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Tiny Ultimo retail building bought 60 years ago could sell for about $4 million

October 12, 2018

The narrow space next to the Agincourt Hotel could net about $4 million. Photo: Supplied

A historic property in Sydney’s Ultimo has been listed for the first time in nearly 60 years and could fetch about $4 million.

The two-storey asset at 869 George Street occupies 88 square metres – equivalent to an average two-bedroom unit – and could net more than $45,000 a square metre.

The property last sold for £10,000 in 1962 to the McKenzie family and has remained in the family ever since.

What the 1890s coach and wagon building looks like today. Photo: Google MapsWhat the 1890s coach and wagon building looks like today. Photo: Google Maps

The entire building at 857-869 George Street was owned by Henry Goodwin and was used as the headquarters of his coach and wagon business in 1895.

He also owned the Agincourt Hotel next door, which he built himself, as indicated on top of the pub’s façade.

Now used as a retail property, 869 George Street is on a new five-year lease to 7-Eleven, with two five-year options.

Savills Australia selling agent David Hickey said the fact that the property had been kept in the family so long highlighted how appealing some properties were.

“These generational-style assets only come to market every so often so we feel the limited supply will ensure 869 George Street will receive full attention from the marketplace,” he said.

The main drawcards of the property were the location and “safe fundamentals”, including the long-term lease to a blue-chip tenant, Mr Hickey said.

“Buyers are consistently chasing income-producing assets in super prime locations,” he said.

“Any property anchored by a blue-chip covenant like 7-Eleven will enjoy strong future tenure, which will hopefully translate into a benchmark result for our vendor.”

The agent, along with colleagues Tom Tuxworth and Nick Tuxworth, expect interest from local and interstate investors.

It is not the only small block of land in the southern part of the city to attract strong land rates.

Not far away, the team also sold a relatively small warehouse building at 8 Cunningham Street, Haymarket, for $5.6 million in late September.

Occupying 149 square metres in a laneway, the sale was equivalent to a land rate of nearly $38,000.

“The purchaser has taken a long-term view on the southern end of the CBD and plans to refurbish the existing building into a creative working space, which he feels will attract higher rents,” Mr Hickey said.

It last sold for $3.74 million in mid-2015, Domain Group records show.

Another retail property for sale is 1/88 Alfred Street, Milsons Point, the retail component of Cbus Property’s 123-apartment development, which was completed this year. With a 10-year lease to QE Foodstores, it is tipped to sell for $5.5 million when it goes to auction onsite on November 10.

The Ultimo property is set to go under the hammer onsite on November 16.

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