Undeterred by the slower retail environment, a number of international retail “heavy-hitters” were in attendance at the 106 King Street auction in Sydney’s luxury retail CBD precinct.
A local, private owner-occupier snapped up the six-storey freehold building for $23.5 million, outbidding a number of global players, many of which were from the retail and fashion sector.
Vendor Sam Arnaout of Iris Capital offloaded the heritage-building, designed by architecture firm Sheerin & Hennessy in 1887, having purchased it only three years ago for $20 million.
The sale follows the record-breaking strata sale of 155 -159 King Street to luxe brand Hermes for $100 million in July this year.
Neighbours in the precinct include Cartier, Chanel, Dior, Tiffany & Co.
Located close to Pitt Street Mall, the King Street property spans 312.5sq m across the ground floor, basement and four levels of office space as well as a rooftop terrace.
The building was sold by Colliers International’s Miron Solomons and Harry Bui, and Savills Australia’s Jordan Lee and Andy Hu.
The team said the turnout was “a sign” that Sydney CBD’s luxury retail precinct is “still, and will always be, hot property”.
Solomons described the sale as a “record-breaking” result for the Sydney lux spot.
“In the end, a luxury owner occupier was triumphant in securing a forever home; which further solidified the intrinsic value of the entire precinct,” Solomons said.
The campaign saw a range of interest from across Australia and the Asia Pacific, according to the sales team.
“We had a lot of High Net Worth privates looking for flagship assets and a lot of clients in Asia hoping to secure a flagship presence in the Sydney CBD,” Lee said.
Earlier this month, Arnaout’s Iris Capital expanded its holdings in Sydney’s pub sector, buying the Sportsman Hotel in Blacktown for $23.4 million. The group also picked up Manly's Hotel Steyne for more than $60 million in May.