A Surry Hills freehold office building has changed hands for $33,530,000 representing a net yield of 4.5 per cent.
CBRE’s City Fringe team of Nicholas Heaton, Gemma Isgro and Nick Wheatley negotiated the sale of 1-9 Buckingham Street on behalf of RT Health Fund.
“The campaign received a high level of interest from local, interstate and international buyers - particularly from the European and Chinese markets - yielding 441 enquiries which led to 51 inspections and 18 offers in the first round,” Ms Isgro said.
The property was purchased by a private Chinese investor represented by the Sydney-based boutique property firm Centennial Property Group.
The sale breaks the city fringe price per square metre record held by 19 Foster Street which sold for $39.5m in February 2019, representing a rate of $12,500psm.
The sale price of 1-9 Buckingham Street translates to a rate of $19,770psm, representing a 58 per cent uplift in city fringe capital value in four months.
Mr Heaton said the sale has reset the benchmark for commercial property in Sydney’s City Fringe and suburban markets.
“There is a huge force of private capital looking for a higher return than banks can offer, and commercial property is now the instrument of choice” Mr Heaton commented.
“With infrastructure projects providing better amenity to tenants, Surry Hills is now demanding CBD rental rates while providing a more creative alternative to the corporate CBD image.”
CBRE’s City Fringe team of Nicholas Heaton, Gemma Isgro and Nick Wheatley negotiated the sale of 1-9 Buckingham Street on behalf of RT Health Fund.
“The campaign received a high level of interest from local, interstate and international buyers - particularly from the European and Chinese markets - yielding 441 enquiries which led to 51 inspections and 18 offers in the first round,” Ms Isgro said.
The property was purchased by a private Chinese investor represented by the Sydney-based boutique property firm Centennial Property Group.
The sale breaks the city fringe price per square metre record held by 19 Foster Street which sold for $39.5m in February 2019, representing a rate of $12,500psm.
The sale price of 1-9 Buckingham Street translates to a rate of $19,770psm, representing a 58 per cent uplift in city fringe capital value in four months.
Mr Heaton said the sale has reset the benchmark for commercial property in Sydney’s City Fringe and suburban markets.
“There is a huge force of private capital looking for a higher return than banks can offer, and commercial property is now the instrument of choice” Mr Heaton commented.
“With infrastructure projects providing better amenity to tenants, Surry Hills is now demanding CBD rental rates while providing a more creative alternative to the corporate CBD image.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), 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 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), 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 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.
