A group of owners of a strata office block in the Sydney CBD banded together in an effort to sell a part-interest in the building that is within one of the NSW government’s proposed “tower cluster” sites.
The stake for sale at 60 York Street comprises nine lots and is being sold on behalf of six commercial strata owners who are targeting developers and investors who can see the potential of the site.
While it can often take years to get owners to agree to sell together, the vendors, in this case, moved quickly after agreeing earlier in the year to join forces.
The consolidated ownership represents a 38 per cent interest in the office tower. The stake is estimated to be worth more than $35 million.
An owner would need a 75 per cent interest in a building to take control of a site.
The building sits on a 538sq m site within of one of four larger tower cluster sites near Circular Quay, Town Hall and Central Station that the City of Sydney has earmarked for potential developments of up to 330 metres in height.
The nine strata lots equate to a total area of 1735 sqm and include five basement parking spaces. The building comprises 25 lots over 12 levels, with ground-floor retail and 11 levels of commercial office space.
The tower cluster sites form part of the City of Sydney’s draft planning strategy – the most detailed review of the city since the 1970s – to encourage increased density in a growing CBD with 467,000 jobs forecast for 2036.
Earlier this year The Australian Financial Review revealed how one developer, Milligan Group, had spent three years developing a super site in another designated tower cluster area on the corner of Hunter and Pitt Streets with a series of covert deals worth about $300 million to gain control of 2000sq m.
Dexus and Lendlease have also accumulated properties in the designated tower clusters.
The stake at 60 York Street is being marketed through Cushman & Wakefield’s Daniel Francis, Daniel Courtnall, and Brad Hamilton.
“The initial 38 per cent entitlement provides the purchaser with a pathway to negotiate with other strata owners within the building, or to capitalise on the potential redevelopment opportunities should another acquirer seek to secure the site,” Mr Francis said.
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