Publican Kim Maloney has sold two buildings in the heart of the Sydney CBD for $46m.
The properties comprise a seven-storey heritage building at 114 Castlereagh Street and a smaller four-storey building at 139 Elizabeth Street. The two buildings provide 2,818sqm of NLA and benefit from dual street frontages and dual Titles providing optionality for further development / divestment.
The price paid by Fife Capital represents an initial yield of just 3.89% and a WALE of just 1.67 years. The property is 97% leased but suitable for re-positioning. Passing rents in the building are circa $400/sqm pa vs a market average of $734/sqm pa.
The Castlereagh Street building is leased to the St James Hotel on the lower ground level, ground level and first level and has offices above. The smaller four-storey building in Elizabeth Street has Levendi Jewellers as its major tenant, which leases the ground and lower ground level retail space.
The buildings were marketed by JLL but have sold well short of their +$60 million expected price tag.
The property was offered to the market throughout COVID 19 lockdown period and generated over 200 enquiries mostly comprising HNW individuals, Family Offices and Private Equity capital.
Fife’s offer for the building was reportedly the cleanest offering with a 10 day due diligence period and a 6 week settlement. Contracts were exchanged in late July and settled in early September.