Sydney landmark the Edgecliff Centre has sold to The Longhurst Group for $AUD138.75 million, in a sale by JLL with co-agents Knight Frank on behalf of a private family.
Longhurst has made its first foray into the Sydney property market with the acquisition of the landmark Edgecliff Centre.
Longhurst, headed by former Mirvac executive Paolo Razza said the Edgecliff Centre was an opportunity too good to be missed. “This is a landmark building that is nowhere near realising the full potential of its location and views of the Sydney CBD and harbour,” said Mr Razza.
The winning bid was led by another ex Mirvac exec, Paul Apostoles, who together with CEO Paolo Razza have been involved in some of Sydney’s most significant and complex projects including Green Square Town Centre, Harold Park and the newly opened Tramsheds.
Longhurst, backed by local investors, is focused on complex, mixed-use sites on the eastern seaboard.
“We have been strategic with our first purchase and waited for the right site to come along and we will do that again,” said Mr Razza. “This asset is typical of what we are looking for. It is complicated and will require patience and persistence but over time we will be able to add significant value to it.”
“It would be premature to talk about our plans for the centre and our first step will be to consult with key stakeholders about how we can rejuvenate this incredible site, making the most of its natural attributes and location adjacent to Edgecliff Railway Station and the bus interchange,” said Mr Razza.
“An important part of any future plans will be to explore ways to integrate the adjacent East Point shopping centre, which was originally developed by Mirvac in the early 1980s and is still owned by the family of Mirvac co-founder Henry Pollack.
“Development sites as good as this are all but non-existent in the eastern suburbs of Sydney and we have a once in a lifetime opportunity to deliver something truly remarkable that benefits the whole community.”
Recent sales have recorded sale rates on completion in the order of $25,000 - $30,000 per square metre. The freestanding office tower also has 360 degree panoramic views of the Sydney CBD, Rushcutters Bay, Paddington, Double Bay, Woollahra and across to Point Piper, supporting the opportunity to redevelop the site to adaptive use (STCA).” The Edgecliff Centre was a real “one off”, super strategic office and retail investment and future redevelopment opportunity, according to JLL’s Head of Retail Investments – Australia, Simon Rooney.
“These large, landmark holdings, with highly secure cash flow, major development potential, sitting on top of a bustling transport hub, within a captive and affluent demographic, are really once in a cycle opportunities and the market response was overwhelming. As expected, the campaign attracted significant interest from a wide range of developers, institutions and high net worth investors, equally split between domestic and offshore, many of which had not been overly active of late," said Mr Rooney.
Mr Razza is no stranger to large scale, complex urban renewal projects. He led the Mirvac/Urban Growth Consortium responsible for Green Square Town Centre, one of Sydney’s largest and most significant urban redevelopments, and was instrumental in developing its retail and place-making strategies. Also to his credit are Rhodes Waterside and The Moreton at Bondi, currently under construction. Mr Apostoles played a pivotal role in the development of Harold Park with responsibility for Tramsheds, a new dining and retail destination, which opened its doors this week.
Sydney’s well-known Edgecliff Centre is a major 10,845 square metre mixed-use commercial building, comprising a thriving neighbourhood shopping centre and a 6 storey office building, situated at the prominent gateway to the Eastern Suburbs of Sydney. It has been privately held for the last couple of decades. Its location provides unmatched exposure to the bustling New South Head Road with over 70,000 cars passing daily, with a direct link to Edgecliff Railway Station and Bus Interchange, estimated to cater to around 14,400 daily passenger movements.