This article is from the Australian Property Journal archive
A FULLY leased four-level mixed-use building in Sydney’s upper north shore, tenanted by Officeworks and the New South Wales State Government, has sold for $25.66 million.
The 2,265 sqm Hornsby site at 108 George Street sold at a 6.8% yield, with a passing income of $1.76 million. As well as a strong tenancy profile, the property offered significant redevelopment potential.
Its B4 Mixed Use zoning under the Hornsby Local Environment Plan 2013 allows for a 40-metre height limit and a 5:1 floor space ratio.
Knight Frank’s John Talbot said during the marketing campaign that it is feasible to achieve a mixed-use development comprising a 12-storey use tower with around 100 apartments and 2,500 sqm of commercial and retail space.
Talbot sold the property with colleagues Dominic Ong and Linda Zhu, in conjunction with Savills agents Matthew Dunn and Tim Grosmann, on behalf of a local private investor who developed the site in 2008. It was originally to the open market in early May.
The current four-storey building comprises 4,397 sqm of let lettable area, including a ground floor showroom tenanted by Wesfarmers’ Officeworks, and three levels of office accommodation and three-levels of basement parking with 86 car spaces.
Tenants also include United Protestant Assocation of NSW, Australian Unity and Midas Australia, while the parcel of land adjoining the building is leased to Midas Australia on a brand-new 10-year lease.
Hornsby is located around 25km north-west of Sydney’s CBD, in a gateway location from the Central Coast and Newcastle.
The suburb’s CBD is earmarked for retail and commercial development including Westfield Hornsby featuring Myer, David Jones, Event Cinemas, 335 retail stores, a food court and several restaurants, adding tothe Florence Street and Hunter Street pedestrian mall.
Knight Frank and Savills teamed up earlier this year to negotiate the $22 million sale of the 22-28 Edgeworth Avenue office building in the suburb, at a new benchmark yield for the precinct of 5.68%.
The four level building of 3,506.5 sqm was picked up by a private investor from Abacus Property Group fully leased, underpinned by a longstanding tenancy to the ground floor medical centre tenant Royal Wolf Trading.
Australian Property Journal
