Sydney’s Castlereagh Club sold for $20 million as a lease back
The Castlereagh Club has sold its 4 level stratum commercial premises within the Victoria Tower Residential complex.
Situated at 197 Castlereagh Street, the 2,622 sqm premises sold for approximately $19.85 million to a private investor on a 6.5% yield.
The property comprises squash courts, two levels of basement dedicated to a gymnasium, ground floor bar & poker machines and a restaurant and 12 carparking spaces on Level 1.
It was developed by Leda Holdings in 1995 after purchasing the air space above the former Catholic Club (now the Castlereagh Club) and developing new premises for the Club which they have occupied since completion.
Sold on a lease back arrangement, The Castlereagh Club retains the head lease over the entire premises and has licensed the gymnasium to World Gym (approximately 60% of NLA) and Lynn Shanghai Restaurant.
The Club retains control of the 18 gaming machines on the ground floor and the Level 1 Bar adjacent to the restaurant.
The sale was brokered by Colliers International Tom O’Neill and Vince Kernahan in conjunction with Henderson and Horning’s William Mulvihill and Bill Rees.
“The campaign saw very strong interest from local and offshore high net worth investors and funds who recognise the exceptional growth prospects for the property being surrounded by new projects which are adding valuable amenity. These include the proposed Sydney Metro Stations and the towers that will sit above them -the Pitt Street North office tower and the Pitt St South “build to rent” tower.” said Tom O’Neill, Manager, Investment Services at Colliers International who introduced the buyer.
“The Club has repositioned the property and rebranded the club reopening the upstairs bar and restaurant after having just undertaken complete refurbishment of the building and securing Wold Gym to occupy 1600sqm” said will Mulvihill who introduced World Gym.
