Heritage Millers Point office seeks more than $5.5 million
A heritage warehouse-style office in Sydney’s Millers Point, where exposed brickwork and timber beams frame the headquarters of creative communications agency Poem Group, has been offered for sale with a price guide above $5.5 million.
The commercial holding at 28 Windmill Street contains 531 square metres of lettable office space on ground and mezzanine levels, along with two car spaces.
Poem Group has leased the office until June 30, 2028, with a further four-year option. The property generates gross annual rent of $514,415 plus GST, equivalent to $969 a square metre, and the lease provides for annual increases of 3.75 per cent.
The opportunity provides income-producing entry to a precinct where smaller commercial buildings sit alongside the large office towers of Barangaroo and the central business district.
Inside, the two-level plan creates a mix of open work areas and enclosed rooms while retaining the character associated with the area’s maritime past.
Colliers head of NSW investment services James Cowan says the design and setting are closely aligned with the needs of the current tenant.
“Millers Point and Walsh Bay have developed a distinct identity within Sydney’s commercial landscape, combining heritage architecture and a highly amenable waterfront setting with direct access to Barangaroo and the CBD,” he says.
“What is particularly interesting is the alignment between the building and its occupier. The exposed brickwork, timber beams, soaring ceilings and original industrial elements provide the type of distinctive workplace environment that has strong appeal to creative businesses.”
That alignment is visible in Poem Group’s use of the premises. Rather than relying on a conventional office layout, the agency occupies a self-contained space whose fabric forms part of the workplace experience. For investors, the tenant also brings an established creative use to a building already configured for that market.
Joseph Lin, Colliers’ national director of Asia markets investment services, says the tenant, rent and location support the investment proposition.
“For investors, there is the benefit of a secure lease profile with annual rental growth, while the size and configuration of the tenancy also provide flexibility for a future owner-occupier or an investor looking to reposition the accommodation over time,” Lin says.
The building sits between several of central Sydney’s major commercial and visitor precincts. Barangaroo, Circular Quay and The Rocks are nearby, as are the theatres, restaurants and waterfront public spaces of Walsh Bay.
Public transport options include Barangaroo Metro station, Wynyard railway station, ferries and major bus routes. The nearest bus stops listed for the property are on Hickson Road and at Argyle Place, supporting access from both the waterfront and the higher streets of Millers Point.
While the campaign is directed primarily at investors attracted to the existing lease income and fixed rent reviews, its scale and configuration may also prove attractive to future owner-occupiers over time.
