Located right in the city’s busiest retail and office hub, 458-472 George Street's mixed-use zoning and redevelopment potential has been offered to the market for the first time in over 30 years.
Comprised of two buildings to be sold in one line, the whole non-heritage listed site is expected to sell for around $130 million, and sits along the new CBD and South East Light Rail.
458-466 George Street is a two-storey freehold building, while 468-472 George Street is a seven-storey freehold building. The combined blocks (to be sold as 458-472 George Street) would be suited to hotel, residential, office or retail development.
Knight Frank’s John Bowie Wilson, Jonathan Vaughan and Tim Holtsbaum are exclusively managing the sale of the property on behalf of a private family.
According to John Bowie Wilson, Knight Frank’s Head of Commercial Sales, NSW, the George Street properties will be incredibly sought after given the prime CBD location and potential mixed usage.
“Almost fully occupied, the properties have short weighted average lease expiries with no options to renew and are currently being rented below market levels, prepped for immediate positive rental reversion.”
Located in arguably the busiest retail hub in Australia, the George Street properties share the daily foot traffic of Pitt Street Mall and Town Hall Station. The site is adjacent to The Hilton hotel, faces the Queen Victoria Building, is close to the QT Hotel Sydney and State Theatre and is neighboured by flagship Topshop and Topman stores. Other nearby retailers include Louis Vuitton, Uniqlo, Pandora, Zara and Swarovski Boutique.
“This offering will receive significant interest due to its near-future redevelopment potential. The buildings are not heritage listed, so the site can be completely transformed subject to approvals. It has a current holding income with a short weighted average lease expiry of 1.32 years.
“We are anticipating interest from both domestic and offshore developers, institutions, and private investors,” said Mr Bowie Wilson.
Zoned ‘B8 Metropolitan Centre’ under the Sydney Local Environment Plan, a diverse range of land uses are permitted (with consent) including commercial office, retail activities, registered clubs, residential, entertainment facilities, tourist and visitor accommodation.
Mr Bowie Wilson also emphasised how demand for downtown property was being fuelled by the state government’s current transport projects.
“Overseas interest is being directly influenced by the infrastructure boom. Sydney is set to be transformed into a truly international city.
“And on completion of the NSW Government’s $220 million commitment to public space, George Street will command super-prime rental values,” concluded Mr Bowie Wilson.
Comprising a site area of 833 square metres and total net lettable area of 1,678 square metres (920 square metres of retail and 757 square metres of office space), 458-472 George Street is currently 95 per cent occupied with 100 per cent freehold interest. The gross passing income is $2,750,000 per annum as at May 2017.