Prominent Sydney publican Kim Maloney is selling two freehold buildings in a luxury retail and office precinct, with a price guide of about $60 million.
The two adjoining buildings at 114 Castlereagh Street and 139 Elizabeth Street, in Sydney’s tightly-held midtown precinct, are being sold via an international expression of interest campaign.
The seven-storey retail and offie building at 114 Castlereagh Street fronts Elizabeth Street, adjacent to the Sydney Westfield and is leased to the St James Hotel on the lower ground level, ground level and the first level.
The smaller four-storey building at 139 Elizabeth Street is located directly opposite Hyde Park and St James Station, and houses Levendi Jewellers as its major tenant, leasing the ground and lower ground level retail space.
The properties are both one of only four assets under $100 million that have been offered to market in the tightly held Midtown precinct since 2018, according to JLL Research.
Pitt Street Mall and David Jones' flagship store are in close proximity of the two buildings, and neighbours include luxury retailers Prada, Cartier, Gucci, Dior, Van Cleef & Arpels and Hermes.
JLL’s NSW capital markets senior director James Aroney will manage the campaign along with director Mitch Noonan on behalf of vendor Kim Maloney, who owns a number of Sydney pubs including the landmark Hotel Bondi, purchased in 2014 from his father, well-known publican Cyril Maloney.
While Noonan and Aroney declined to comment on price expectations, market sources suggested the assets could sell for upwards of $60 million.
Aroney said the value-add opportunities presented by the two buildings in Castlereagh Street and Elizabeth Street was a big drawcard.
“We expect these assets to generate significant interest from high net worth individuals as well as value-add investors who appreciate assets such as this are extremely scarce and rarely come onto the market.
“Both assets offer their own value-add opportunities including repositioning 114 Castlereagh Street to capitalise on the significant precinct enhancements as well as the potential to redevelop Elizabeth Street into boutique residential or mixed-use development,” Aroney said.
Noonan said that despite recent volatility in various alternative asset classes, interest in CBD markets has continued.
"This is particularly the case for assets underpinned by strong fundamentals, defensive income in core locations and close to transport nodes such as 114 Castlereagh Street and 139 Elizabeth Street.”
Midtown is currently undergoing significant investment in amenity including David Jones' $200 million refurbishment of its Elizabeth Street store, as well as the Scentre Group and Cbus redevelopment of the former David Jones Market Street store, slated for completion in 2023.
Also in close proximity is the Pitt Street North Metro Station and office tower development by Oxford, Grocon and CPB Contractors that will include a new 40,000sq m office complex above the new Metro Station by 2024.
The international expressions of interest campaign will close 10 June.