- Bidding sharpens for $1.8b Wynyard development
- NAB makes its move to $1.7b Wynyard Place
- Walk on the Wynyard side: Sydney’s new pedestrian tunnel opens to commuters
The NSW government is selling thin air above the western entrance of the newly opened Wynyard walk, in the Sydney CBD.
As development sites in the city become increasingly rare, the airspace above 26-38 Clarence Street is being sold as part of a 99-year lease by the government.
The site can accommodate 10 storeys and has B8 Metropolitan zoning – meaning a hotel, offices, serviced apartments or student accommodation could all be future tenants. It doesn’t yet have development approval, which would be needed before construction could begin.
Currently the site has a lift shaft and access to Wynyard station below ground and two storeys above ground with floor space of approximately 730 square metres, which would also be the maximum floor plate of any future development above.
Records show a development application for use of the ground floor as retail was approved in 2015 and it is being used as a foyer entrance to the station.
Rebecca Roberts from CI Australia said that pricing airspace was more complex than a freehold land site but savings could be made on construction.
“It’s hard to compare to other sites but construction could cost less because you’re out of the ground, which is the most risky part,” she said.
When Sydney’s planned new metro stations are completed the airspace above them will also likely be sold for development.
Landlords can apply to the city council for the rights to subdivide and build up and may be allowed to sell a ratio of additional space based on their existing floor size.
Airspace sales from private companies are rare in Australia.
Selling agent Andrew Hunter from CI Australia said constructing on an existing site could be easier than freehold land because the infrastructure and foundations were already there, though there could be logistical challenges getting materials onto the first floor.
Mr Hunter said it was “certainly an unusual listing” and he had only ever sold one airspace site before.
There had already been significant interest from commercial tenants and hotels looking for a smaller site.
“It’s currently the only development site for sale in this part of the city and I think the infrastructure’s ideal- you can get direct access to the station and down to Barangaroo,” he said.
The 26-38 Clarence Street is for sale through expressions of interest closing 29 June, 2017.
Keep up with Commercial Real Estate news.