Office tower in Sydney CBD up for sale with asking price of more than $150 million
An office tower in the Sydney CBD with the NSW government as anchor tenant is up for sale with price expectations of more than $150 million.
The building at 59 Goulburn Street has potential for further development across the residential, commercial office and hotel sectors.
The freehold asset is 98 percent occupied, has 23 levels with a net lettable area of 18,867 sqm and ground floor retail. It is directly opposite the bustling World Square precinct in the Sydney CBD.
The asset offers a Weighted Average Lease Expiry of 2.3 years and estimated passing income is $8.13 million.
The property is being marketed by JLL and Colliers International on behalf of Roxy-Pacific Holdings Limited, via an international expressions of interest campaign closing on March 23, according to a media release.
The asset has three viable development options. These are; a repositioning of the existing asset with the potential for higher rentals; redevelopment into a new commercial office tower; or redevelopment into a 38-storey mixed-use tower comprising retail and commercial, 407 hotel suites, 90 residential units and 94 car parks. The asset currently has Stage 1 Development Approval for the potential hotel and residential development.
JLL’s Ben Hunter, James Aroney and Sam Brewer are the agents on the campaign, along with Colliers International’s Vince Kernahan and James Girvan.
Roxy Pacific Australia director Ben Hopkins said, “After entering the Australian market in 2014 we have managed to build up a robust portfolio of both development and investment assets across Australia with value over $500 million. After fielding numerous offers for 59 Goulburn St Sydney we have decided to offer this landmark freehold opportunity with exciting re-development potential to the market.”
JLL’s Aroney added that the central location and development options will allow the eventual purchaser to create a “new offering amongst one of Sydney’s busiest CBD precincts”.
“There is ongoing demand for office assets of this nature in Sydney, particularly when there is room for significant rental upside.”
