US global property giant LaSalle Investment Management has listed the King Street Wharf restaurant precinct, with expectations around the $130 million-mark.
The listing makes up two separate lots on Sydney Harbour, and is 100 per cent occupied by 14 tenants, comprising 5,651 square metres of retail accommodation. Kings Street Wharf is being marketed by Simon Rooney of JLL and Carl Molony and Philip Gartland of Stonebridge.
With a 99-year leasehold, King Street Wharf has boasted a highly-secure income source with a WALE of 11.2 years (by area) and average tenure to date of 11.9 years. Those who currently occupy space within the precinct include Cargo Bar, Bungalow 8 and The Loft, Meat District Co until at least 2029.
JLL’s Simon Rooney said King Street Wharf will benefit from the strong consumer trend towards food and beverage and provides exposure to a high-growth segment of the retail sector.
“Cafes, restaurants and takeaway food has delivered the highest rate of annual spending growth of any retail category over the long-term,” he said.
“Major Sydney CBD retail assets are rarely offered for sale and we see this asset as an
opportunity to gain exposure to the extensive urban regeneration which is occurring all around the Darling Harbour, King Street Wharf and Barangaroo precincts.”
King Street Wharf was completed in 2001 but LaSalle didn’t acquire the precinct until 2016, when they bought King Street Wharf from Brookfield on a 6 per cent yield for $90 million, in a transaction which was managed by Colliers International.