CBRE has sold a 99-year leasehold interest in a heritage-listed commercial property in The Rocks, on behalf of Property NSW, for $7.5 million.
Built in 1921 and fully restored in 1970, the historic 16-18 Grosvenor Street office building was sold with vacant possession to a private syndicate following a formal tender campaign.
Proceeds from the divestment will fund improvements to key public domain areas along the Sydney Harbour foreshore.
CBRE’s Mitch Noonan and Harry George acted exclusively on behalf of Property NSW, with Mr Noonan noting it was the only asset in the Sydney CBD financial core to be offered to the market under $20 million.
“Despite the property being offered to market vacant, we dealt with a significant volume of interest from typically passive investors. This tells us investors are starved for opportunities in the Sydney CBD and are backing the strong office leasing fundamentals to generate higher returns,” Mr Noonan said.
“Freestanding buildings in premium CBD locations are rarely offered to the market, with this property one of only four freestanding assets with an NLA less than 1,000sqm listed over the last 12 months. The scarcity of the asset coupled with its heritage character definitely drove interest in the property.”
The building is erected on a 276sqm site and provides a commercial office NLA of 908sqm over four-storeys. It is in a pivotal part of the Sydney CBD, on the corner of Cumberland Street, Grosvenor Street and Gloucester Street and will benefit from significant infrastructure upgrades over the next few years including the $2.1 billion light rail project.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.