New on the market is an investment opportunity in Sydney with a long-term lease to serviced apartment operator
Quest Group, developed by
Alfasi Property Development.
The property, for sale through
Knight Frank, is located at 66-79 Sussex Street on the northern end of the Western Corridor, and is adjacent to King Street wharf.
Construction on the eight-level building is expected to conclude in June 2017 with a total floor area of 6,651 square metres on the 1,180 square metre site.
The building was designed by
Fitzpatrick + Partners, and will feature typical floor plate areas that will be approximately 872 square metres for levels 1-5 (comprising 24 rooms), and 556 square metres for levels 6-7 (comprising approximately 15 rooms. Levels 1 and 2 have four rooms per level with disabled access.
The ground floor will comprise a reception lobby, back office operations and 13 rooms. The lower ground retail tenancy is 276 square metres with a two-year rental guarantee.
James Parry, Knight Frank’s Head of Institutional Sales, Capital Markets Australia, said Sydney’s Western Corridor is expected to see an increase in demand as Lend Lease’s $6 billion Barangaroo development will draw premium tenants.
“The investment offers substantial tax benefits to the purchaser, that will enhance the investment return, as well as the security of income with a 21 year lease to Quest,” Mr Parry said.
The Western Corridor encompasses a variety of office, retail, residential and hotel developments including the Plaza, Darling Harbour Four Points Hotel and Darling Park. The area is services by nearby transportation options including the Wynard bus and rail interchange and the King Street Wharf.
The site is zoned “B8 Metropolitan Centre” under the Sydney City Council and has a height limit of 28.6 RL across the vacant land.
The weighted average lease expiry is 20.58 years with a net passing income of approximately $5.15 million (as at June 2017).
The 100 per cent leasehold of 65-79 Sussex Street is for sale exclusively through Expressions of Interest, closing 30 October 2014.