Sydney, 9 February 2014 – The development of Sydney’s Barangaroo precinct has underpinned a surge in demand for investment opportunities in neighbouring Walsh Bay stretching through to the CBD’s Western Corridor.
Highlighting the strength of the current buyer demand, Pier 8 & 9 at Walsh Bay and a nearby heritage building at 36 Hickson Road have changed hands in deals totaling a combined $58.5 million.
Gavin Lloyd and Rohan Ramsay of CBRE negotiated both sales, with a Swiss investment company, sitEX, acquiring Pier 8 & and a Sydney-based investor acquiring 36 Hickson Road.
Mr Lloyd said the deals highlighted the flow through effect of Barangaroo, with investors seeking to capitalise on the rejuvenation benefits that Australia’s largest, mixed use waterfront development would provide to neighbouring buildings on the doorstop of the Sydney CBD.
"Walsh Bay and Hickson Road have been recognised for many years as a premier address for creative tenants,” Mr Lloyd said.
“The $6 billion Barangaroo precinct has heightened the focus on these neighbouring markets and underpinned a surge in tenant and buyer demand, with investors focusing on the provision of new infrastructure, amenity such as the planned Headland Park and its associated cultural facility, as well as significantly improved transport links.”
Mr Lloyd added that residential conversion opportunities were also on the radar of investors following the highly successful release through CBRE of the first stage of apartments at Barangaroo South.
Pier 8 & 9 is a refurbished, heritage finger wharf which was listed for sale on behalf of Matt Handbury of Murdoch Media.
Mr Ramsay said the campaign had generated strong interest, particularly from syndicators and offshore buyers. The transaction represents the latest foray into Australia for sitEX, which last year acquired 117 Harrington Street for circa $13 million. sitEX is represented in Australia by Sumner Capital.
The building’s strong tenancy profile was one of the drawcards for buyers, with design firm Hassell Services having last year signed a 10-year lease for 2,660sqm of space. Other tenants in the 7,500sqm building include Yahoo!7 and Murdoch Media.
Mr Ramsay said Hassell spent more than five years inspecting over 50 properties before selecting Pier 8 & 9 as its new Sydney home. The attraction: heritage space that allowed staff to work in a studio format, rather than traditional office space, and one that they could used to showcase their work to clients.
Heritage appeal was also a drawcard for buyers looking at 36 Hickson Road, a sandstone building which was Sydney’s original gas works.
Known as 36 The Bond, the 1,200sqm building was refurbished to provide unique office and retail space on a freehold strata title.
Mr Lloyd said the buyer intended to source new tenants for the building and create additional retail space once it was vacated by the current tenant, Lend Lease.
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