Office Asset in Sydney’s Haymarket Listed for $75m

An office building in Sydney’s Haymarket will test demand for inner-city assets as it comes to market this month with price guidance around the $75 million mark.

The 191 Thomas Street asset, is an eight-storey office building located in Sydney CBD’s southern precinct—the city's growing innovation and technology precinct.

Vendor the Community and Public Sector Union says it will divest its long-held asset due to Sydney’s robust office market conditions with plans to “diversify its asset base”.

The building incorporates ground floor retail and basement parking for 16 cars with a net lettable area of 4,797 square metres.

Sydney CBD is currently in the midst of low vacancy rates and rental growth.

Related: Sydney Development Site Hits the Market for $130m

Savills Australia and Colliers International are managing the expressions of interest campaign, describing demand for commercial assets in the CBD from both offshore and local capital as “unprecedented”.

The building is for sale exclusively through Colliers International’s Vince Kernahan, Steam Leung, Joseph Lin and Tom O’Neill of and Savills Australia’s Jordan Lee, Andy Hu and Tim Grosmann.

Kernahan said Atlassian’s announcement to occupy a 50,000sq m building on Lee Street in Broadway was a boost for the precinct.

“We are seeing unprecedented demand from both offshore and local capital for commercial assets in the Southern CBD” he said.

The building is 100 per cent occupied, on a current net passing income of circa $2.7 million.

The expressions of interest campaign closes in March.