The Castlereagh Club in Sydney CBD is on the market. Photo: AFR

The Castlereagh Club property for sale at $20 million

Su-Lin Tan|May 16, 2019

The stratum property of one of Sydney’s most visible Pitt Street mall clubs, The Castlereagh Club, is on the market with a price guide of about $20 million.

The 2622-square-metre property at 197-199 Castlereagh Street is being sold for the first time in 23 years.

The sale of the five-level building will include a leaseback to the Castlereagh Club, which will continue to operate its club services, a bar and and Lynn Shanghai restaurant. An onsite gym, World Gym, will also stay on the premises on a license. The sale is expected to represent a yield of 5 per cent.

Close to the future Pitt Street metro fast train, the building is also close to a series of apartment development including Aoyuan and Ecove’s ONE30 Hyde Park on Elizabeth Street and Dexus’ 201 Elizabeth Street, a proposed redevelopment of a 50-storey hotel and residential tower.

Colliers International Vince Kernahan and Tom O’Neill and Henderson Horning’s Will Mulvihill and Bill Rees are handling the sale.

The sale is part of a series of facelifts and revivals for older clubs in the area including the $200 million proposed redevelopment of the City Tattersalls Club at 194-200 Pitt Street.

After a few setbacks, including a knockback by the City of Sydney Council in 2017, the Tatts Club project was back on track last year. Plans for the site include a boutique 100-room hotel and 267-apartment tower at the club’s three interconnected buildings on Pitt Street.