Two prime George Street commercial buildings for sale at $130 million
A prized development site in the heart of Sydney’s retail precinct opposite the Queen Victoria Building has been offered for sale for the first time in 30 years with a price expectation of $130 million.
The two blue-chip, flexibly zoned central-city properties include a two-storey freehold building at 458-466 George Street and a seven-storey freehold building known as Dudley House at 468-472 George Street.
Together, the whole block is 95 per cent occupied and has a net lettable area of 920 square metres of retail space and 757 square metres of office space. It sits on an 833-square-metre site and earns a gross annual rent of $2.75 million.
Major retail tenants include Platypus Shoes and 7 Eleven.
The combined block can be converted into a hotel, residential, office or retail development, said Knight Frank, which is marketing the property, benefiting from other nearby amenities. The site is directly opposite the Queen Victoria Building and adjacent to The Hilton Hotel, QT Hotel and State Theatre.
John Bowie Wilson, Jonathan Vaughan and Tim Holtsbaum are managing the sale of the property for a private family from Sydney’s eastern suburbs.
“This offering will receive significant interest due to its near-future redevelopment potential,” Mr Bowie Wilson said.
“We are anticipating interest from both domestic and offshore developers, institutions and private investors.”
The properties also benefit from being non-heritage and can therefore be completely transformed subject to approvals. Future developments on the site will also benefit from the new Sydney light rail which travels past the site.
“On completion of the NSW government’s $220 million commitment to public space, George Street will command super-prime rental values,” Mr Bowie Wilson said.
While the site can be used for residential development, a commercial outfit – especially one above 55 metres – would benefit from the current draft Central Sydney Planning Strategy.
The plans would require all new towers over 55 metres to be at least half commercial. In a further incentive, developers could build above current height limits, up to 300 metres, if the towers were exclusively for commercial use.
The listing of the site also joins other recent high-profile sales and development on the same strip.
Hong Kong’s Cheng family purchased a 75 per cent share in the MidCity Centre which fronts Pitt and George streets for more than $310 million last year. It was the highest price per square metre paid for such a property.
Charter Hall is near completion with its $250 million redevelopment at 333 George Street down the road. It has retail tenancies from NAB, HSBC and Woolworths locked in.
