This article is from the Australian Property Journal archive
THE national telco is furthering its multi-billion dollar property selldown, this time looking to offload two trophy development sites with luxury residential potential in exclusive Sydney suburbs.
The freehold development sites, located in Vaucluse and Hunters Hill, are both improved with circa 1950s telephone exchanges. Both are characterised by oversized double-storey brick buildings with unique character and each exceeding current planning controls.
Holding income is on offer via short-term leasebacks to Telstra, to facilitate decommissioning and exit at both sites.
Vaucluse and Hunters Hill are home to some of Sydney’s most affluent households, with median household incomes sitting at 50% and 48% above the state average, respectively. The suburb of Vaucluse boasts a median house price of $9,000,000 – the joint highest in Australia.
Stonebridge’s Lincoln Blackledge and Spero Xenos have been appointed to steer the expressions of interest campaign for 4 Olphert Avenue, Vaucluse and 1C John Street, Hunters Hill, closing Wednesday, 13th March.
“This portfolio presents a rare opportunity to acquire prime positions within tightly held Sydney suburbs. The unique built forms sit above current height & FSR controls, providing flexibility to high-end residential developers, owner occupiers or alternate groups such as childcare,” Blackledge said.
The elevated corner site in Vaucluse offers water views from both top and bottom levels, and potential CBD views, and Hunters Hill site enjoys a substantial 1,695 sqm allotment and ultra-convenience to St Joseph’s College.
“Telstra have invested significant time and resources into producing valuable concept schemes for high-end, multi-unit dwellings at both sites,” Xenos said.
“We anticipate immense interest for the potential end products, given the rare and unique nature of the offerings, as well as positions close to some of Sydney’s finest schools,” Xenos said.
Blackledge said the ability to acquire sites with significant built form below replacement cost, whilst enjoying short-term holding income, is an attractive proposition in the prevailing development climate, particularly in suburbs where freehold development sites rarely come to market.
The sites hit the market hot on the heels of Telstra putting a former telecommunications centre in north west Sydney up the grabs. Colliers have the listing of the 1,309 sqm parcel within the Norwest Business Park precinct, zoned SP4 Enterprise meaning it could be used for an office, childcare, medical, retail, boutique hotel or light industrial.
In 2018, Telstra began what was a multi-billion dollar selldown of major real estate assets. Among the more recent divestments was the $30 million sale of a 2.3-hectare site in Melbourne’s south east suburb of Clayton, which was picked up by nearby Monash University.
The selldown has also included a data centre – also in Clayton – for $416.7 million, and the establishment and part sale of the unlisted property trust of 37 properties valued at $1.43 billion, in which Charter Hall took a 49% share, Part of that sell-off included the Edison Exchange building in Brisbane, for $57 million to Singaporean group Firmus Capital.
