North Sydney's 88 Walker Street on the market for $20m
Singapore developer Macly Group is selling its office building at 88 Walker Street in North Sydney, along with a development approval for a 108-room hotel, for about $20 million.
The group acquired the 9-storey 2987-square-metre office building on a 607sq m site for $12.2 million in 2014, from the Korean-backed company Eastmark Holdings, whose plans to build up both 88 Walker and the North Sydney Shopping World at 1 Denison Street into a 30-storey office tower stalled in 2013.
The project split up and went into receivership.
1 Denison Street was subsequently sold to Winten Property Group for $80 million, just last month. Charter Hall was at one point also a contender for 1 Denison.
88 Walker Street had a prior development approval – with 1 Denison – for a 32-storey hotel with 200 rooms.
From office to hotel
The current approval for the vacant building is a conversion from office to a 108-room tourist hotel, with a likely addition of a few more floors.
Colliers International’s Jon Chomley, Tom Appleby and Raymond Tran are marketing the site and have said they have received a flood of calls for it since it went on the market a few days ago.
“The property has multiple value uplift scenarios,” Mr Chomley said.
“There is the existing DA for a conversion to a 108-room hotel, a potential total redevelopment scenario which could include the air rights from the adjoining building or alternatively upgrading the existing office building and releasing it in the undersupplied B-grade office market.”
“The sales market in North Sydney is extremely tight and this property presents a number of excellent value uplift options to the market.”
The property will benefit from two train transport options, the current North Sydney station and the proposed Victoria Cross Metro Station.
Expressions of interest close on August 18.
