High Profile Sydney Office Building Sold For $35m


Leading property development and investment company

Capital Corporation has reaped $35 million from the off-market sale of a high profile office building in Mascot.

Chapel Street Pty Ltd, also known as

C.R. Kennedy, has acquired the seven-storey, 15 Bourke Road property to house its national headquarters.

CBRE’s Olivia Skinner negotiated the sale of the 8,832sqm building, which is presently 100% leased to multi-national tenants such as DHL, Tyco and Hansen Yuncken and also houses the South Sydney office of JLL.

Ms Skinner said the transaction had been a win-win for both parties – providing a strong return on investment for Capital Corporation while also allowing CR Kennedy to remain in the area after selling its own, nearby site to a residential developer.

Capital Corporation purchased 15 Bourke Road in 2011 for $29 million. Since then they have subdivided the site into two lots, with the front portion of the site being developed as a 123-room hotel, pre-leased to Adina and due for completion next month. Ahead of that, Capital has finalised the 15 Bourke Road sale for a value for value $6 million in excess of its initial purchase price for the entire site in addition to receiving a 10% return during the holding period.

“We're extremely pleased with the outcome and will be utilising the funds to develop other current projects in addition to continuing to looking for future opportunities,” Capital Corporation Director, Steve Grant said.

“These transactions highlight the strength of the Mascot market, which has undergone a rapid transformation in recent years,” Ms Skinner said.

“The residential rezoning that has occurred in South Sydney has created significant demand from owner occupiers and office tenants that have been displaced but want to remain in the area given the increased amenity, access to transport and generous parking ratios. For C.R. Kennedy, the acquisition of 15 Bourke Road has achieved their dual aim of keeping their offices in Mascot, whilst also finding an asset that was income producing.”


The sale comes amid continued demand for residential development opportunities in South Sydney, as highlighted late last year by Meriton’s $75 million acquisition of Church Avenue Mascot.

Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: