Iconic Paddington retail property sells for record-breaking rate per square metre

26 May 2023

A retail and commercial building in a very tightly held area in Sydney’s Paddington has sold in a strong result for the market.

The two-storey property at 227 Glenmore Road sold for $3.75 million in an off-market deal negotiated by James Masselos, Demi Carigliano and Anthony Pirrottina of Knight Frank acting on behalf of the vendor.

It was purchased by a local investor from the Ockenden Family, which had owned the property for around eight years.

The property has a total area of 153 sqm, including 118sq m of internal area, on a 142sq m site and is located in the heart of Paddington’s iconic Five Ways.

It is fully tenanted by Sonder Café, with a café on the ground floor and function room above.

The asset was sold at a rate of $31,780 per square metre on the net lettable area, equating to a net yield of circa 3.33 per cent.

Mr Masselos said the sale was a significant one for the market, being the second property Knight Frank has sold in this very tightly held precinct in about 15 months, with the other being 225 Glenmore Road, Paddington via an auction campaign.

“The result itself is very strong in this market given the very sharp 3.33 per cent net yield and a record- breaking dollar rate per square meter on the net lettable area,’’ he said.

‘’Assets of this calibre, underpinned by a prime eastern suburb locale and a historically very tightly held precinct rarely trade as they are so sought after.

‘’Despite the broader macroeconomic market, we are still experiencing strong demand from buyers for prime freehold opportunities in the eastern suburbs and city fringe markets, like 227 Glenmore Road.
“This property appealed to the buyer due to its location in the premium Paddington area, with the added benefit of its enviable B1 Neighbourhood Centre zoning – permitting a multitude of current and future uses for the property.”

Mr Carigliano said: “227 Glenmore Road, Paddington is located in an iconic thoroughfare in arguably one of Sydney’s most tightly held pockets of real estate.

“The asset has a dual-street entrance accessed via Glenmore Road and Heeley Street, and benefits from an impressive frontage on Glenmore Road, giving it great exposure.

“It is within walking distance to all amenities of Woollahra and Oxford Street shopping in an area underpinned by excellent transport infrastructure and surrounding retail and entertainment amenity.”