Haymarket Assets gaining Interest18 March 2020
The Community & Public Sector Union has sold off an asset in Haymarket for $80m.
The property at 191 Thomas Street in Haymarket, is an 8 storey office building comprising 4,797sqm of NLA including ground floor retail and basement parking for 16 cars. The property is fully occupied by a range of tenants including including UTS Insearch, providing a current net passing income of $2.7m. The deal reflects a passing yield of just 3.4%.
The building was offered by Colliers International and Savills in an EOI campaign that closed on the 11th March.
The deal matches recent transactions by Elegant Dixon of 82 Dixon Street for $22.25m in July 2019 and 413 Sussex in July 2018 for $61m, a total price of $83.25m.
In March 2019, Elegant Dixon contacted the City with a pre-development application proposal for demolition and redevelopment of the site. Prior to the meeting, the Sydney Council moved quickly to lodge an interim heritage order. Council subsequently assessed the heritage value of the site and approved the listing of 82 -84 Dixon Street on the heritage register.
It is unclear what the heritage listing means for the future redevelopment of the site, however the group have now transferred ownership of both properties in March this year for a combined value of $88m.