The attention being brought to Chippendale from the large Central Place development by Dexus, Frasers & Atlassian has spurred a number of deals in the precinct.
Last week, the Intera Group settled the acquisition of 39-47 Regent Street for $68.5 million and this week, reflecting a rate of $17,800/sqm of NLA.
This week, an AMP Private Client has acquired 55-59 Regent Street for $37M. Whilst Contracts were exchanged back in December with settlement completing last week.
The property comprises 3 buildings with frontages to Regent, Outram and Kensington Streets forming a total site of 911sqm.
Savills Sydney team managed the transaction on behalf of the vendor.
The buildings provide just 4,042sqm of lettable area and are fully leased asset to educational provider, Education Centre of Australia with a 2.34 year WALE.
The purchase price represents just $9,154/sqm (significantly lower than 39 Regent Street) which reflects the age and quality of the buildings and the short term lease covenant of the tenant.
A Development Application was submitted for the site to redevelop the property into 91 room hotel, however it is unlikely the purchaser will progress with the concept.
The site is zoned Mixed Use with a 25metre height limit and a FSR of 3.5:1, suggesting that the existing improvements are likely to reflect the highest & best use of the property.
It is likely that the purchaser will seek to upgrade the existing buildings and benefit from much higher rentals that are likely to emerge as the Central Place developments emerge.