This article is from the Australian Property Journal archive
A RECENTLY refurbished inner Sydney building occupied by ASX-listed Accent Group is set to make way for a mixed-use development after selling for $12.7 million.
The buyer of the 1,127 sqm Waterloo site at 719-721 Elizabeth Street, SMMH 3 Pty Ltd, will redevelop the site when the tenant vacates the property
Currently, the property has a 1,192 sqm office and showroom building with 28 underground car spaces.
James Masselos, Demi Carigliano and Anthony Pirrottina of Knight Frank brokered the deal on behalf of Kavango Pty Ltd.
Pirrottina said the sale rate of almost $5,650 per sqm of developable floor area was a record for a development site in Alexandria and Waterloo, as was the net passing yield of 3.38%.
He said the yield is reflective of what the price would have been at the peak of the market 12 to 18 months ago.
Expressions of interest campaign for the property resulted in 180 enquiries and six offers.
“The strong demand and record price demonstrates that well-located properties with good future upside potential are still achieving very strong prices,” Pirrottina said, adding that the pricing gap between A-grade and B-grade assets has widened, with premium assets still achieving prices close to their peak.
Masselos said the property, within the Green Square precinct, had offered a solid investment opportunity.
“It has outstanding passing income with a secure lease underpinned by an ASX-listed covenant, as well as substantial upside in the form of future redevelopment potential,” he said.
