Centre of Sydney's rag trade returns to fashion
A commercial terrace in Surry Hills could have a future that harks back to the rag-trade past of the inner city suburb.
Peter Metzner, the owner of fashion PR company The Arc Factory, as well as two pubs in Surry Hills, Harpoon Harry’s and The Dolphin Hotel, has bought the building at 78-78a Campbell Street with plans to transform it into apartments and commercial space.
He was one of two bidders competing for the property at the auction in Knight Frank’s Sydney head office, where the property passed in on Mr Metzner’s bid of $2.55 million.
Listing agent Adam Bodon said the property sold “five minutes” after the auction for $2,595,000, after what was a protracted bidding process.
This is Mr Metzner’s second development project – after 58 Riley Street which is set to come online next year – and he said the site stood out for its value.
“We looked at a lot, and for the square metres, the location…it’s a great deal,” Mr Metzner said.
The property comes with a DA and construction certificate in place for a mixed-use development, featuring 4 apartments and a downstairs restaurant.
He said that he would pursue the mixed-use redevelopment plans, and consider moving The Arc Factory, which has a fashion focus and exhibits clients products in their current Surry Hills office, into the space.
“We’d like to consider a blend of restaurant cafe and marketing-design businesses, with possibly two to three levels of residential,” he said.
“Quite possibly we might put some of the business in there – we’re currently developing our other building at Riley Street and we’re (Arc) currently intending to occupy a floor of that.”
The location of the site places it near the centre of what was Sydney’s thriving rag trade.
Once a neglected area of the popular inner-city suburb, in recent years it has gone through a wave of gentrification.
“It’s a great precinct to live and work in, and that part of Surry Hills is like the village of Surry Hills, it’s well situated,” Mr Metzner said.
“Everyone is excited about the gentrification in that area. There are three wine bars on the street now. It’s been neglected for the past five years but in the past 18 months it’s taken off,” Mr Bodon said.
The 117-square-metre site, which currently incorporates a three-storey, 330-square-metre building, attracted interest from owner occupiers and investors as well as developers in the lead up to the auction, Mr Bodon said.
The listing formed part of Knight Frank’s Exclusive Auctions event held at their head office on Wednesday.
An entire block of 38 National Rental Affordability Scheme apartments at 12 Weigand Avenue Bankstown, also scheduled for auction, sold prior for $12.8 million to a buyer who also holds Sydney CBD assets.
