North Sydney’s once depleted office market has returned to the spotlight with investors and developers taking advantage of the upturn in new tenant arrivals and construction of the Victoria Cross Metro station project.
More than $900 million of sales are in the pipeline with cashed-up investors from Asia, including Japan, joining Australian-based institutions and syndicated funds, said to be running the ruler over many prized assets.
At the smaller end, 41 McLaren Street is being offered for the first time in two decades as a potential development site. The Harry Seidler-designed, 7-storey office building was pictured by the Australian modernist photographer, Max Dupain, in a series of black and white photos taken in the 1970s.
The asset sits directly opposite Victoria Cross Metro Station’s northern entrance on the corner of Miller and McLaren Streets and comprises 8400 square metres, above basement parking for 91 cars and located on a site of 2359 sq m.
Colliers International Jon Chomley, Tom O’Neill and Sophie Tieman have been appointed to market 41 McLaren Street with pricing expectations above $80 million.
Other reported deals n the precinct include American asset manager Nuveen putting up a half-interest in North Sydney landmark 101 Miller Street and Greenwood Plaza, with a value of about $500 million, through Knight Frank and Colliers International.
The office tower at 99 Walker Street is also being offered via Knight Frank and JLL, with pricing said to be about $312 million.
The Colliers agents said one attraction for 41 McLaren Street, is that it will benefit from being within the Ward Street Master Precinct (WSMP) bound by McLaren Street, Walker Street, Berry Street and Miller Street.
“This is North Sydney’s most iconic redevelopment site. After having received several compelling offers from developers over recent years the owners have decided to put the property to market, to take advantage of the scarcity of available sites,” Mr Chomley said.
Mr O’Neill said the property would benefit from demolition clauses, allowing a buyer to take advantage of the asset’s holding income while pursuing refurbishment or redevelopment plans for office or mixed use.
At the larger end of the scale, Tyler Talbot, partner, institutional sales, Sydney Metro, NSW for
Knight Frank Australia, said North Sydney continues to receive strong interest from both domestic and international investors, as rents are proving to be more resilient when compared to the CBD.
“Purchasers are keen to buy in this growth market with a number of transactions taking place which will demonstrate solid asset performance for the precinct since COVID-19,” Mr Talbot said.
Source: Thanks smh.com