A strategic stake in Sydney’s 109 Pitt Street has been listed for sale, providing an opportunity to leverage interest in the next generation of CBD super towers.
CBRE’s Harry George, Kenny Duncanson and Scott Gray-Spencer have been appointed to market 28 suites in the prominent city strata building, which could form part of a significant future development site.
The stake, involving 16 owner-occupied suites and 12 tenanted offices, represents just over 26% of the commercial building’s lettable area and 25.32% of the voting rights.
It would be a key parcel for any group seeking to amalgamate one of the city’s next major development sites under the City of Sydney’s Draft Sydney Planning Strategy.
“The sale provides a strategic opportunity to acquire a blocking stake in the building, giving the new owner a seat at the table in a future super tower development site,” Mr George said.
“The strata lots could potentially form part of a longer-term, 3,200sqm development site stretching from Angel Place to Hunter Street, which has been identified as one of the CBD’s next potential super sites.”
The Draft Sydney Planning Strategy promotes increasing building heights of up to 300 metres, providing a minimum site area threshold is met.
With tenants demanding larger floorplates, Mr George said greater site areas were considered critical for the success of core Sydney CBD developments, with several super towers already being developed in the immediate area – including Circular Quay Tower, Quay Quarter Tower and 210 & 220 George Street.
Notwithstanding future development scenarios, CBRE’s Mr Duncanson said the sale provided an opportunity to capitalise on the underlying strength in the Sydney office market by acquiring strata lots with a combined lettable area of 3,123sqm.
“Historically low interest rates, low supply growth over the past decade and a significant weight of capital seeking to invest in Sydney is driving interest in CBD investment opportunities,” Mr Duncanson said.
“In the case of 109 Pitt Street, the building is situated in the city’s financial core and is surrounded by premium office towers. Refurbished in 2018, the property benefits from its proximity to Pitt Street Mall, the new light rail and from a through site link to Hunter Connection, which provides off street connectivity to Wynyard Station.”
The B-grade commercial building, also known as Randstad House and Hunter Arcade, was constructed in 1963 and offers 20-storeys of office accommodation and ground level retail, positioned on a 1,329sqm site.
Expressions of Interest in the suites listed for sale close Thursday 27th February 2020, with the 16 owner-occupied suites being offered for sale on leaseback arrangements.
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.
