Sydney’s iconic The Castlereagh Club, home to the City Tattersalls Club has come to market, guided by its valuable triple net lease and long WALE with guaranteed rental growth, already capturing the interest of a number of local and offshore investors.
Located at 197-199 Castlereagh Street, Sydney, the property comprises of approx. 2,622sqm holding fully leased to the City Tattersalls Club until 2031 with 10 years of options and fixed 3.5% annual rental increases.
The property has undergone a major renovation by the tenant over the past two years ($5M+) providing a substantial vote of confidence in the longevity of the CBD as a destination for entertainment and community post-Covid.
For sale through Frederic Le Fanue, Bridhe Woods and Jack Harrison of Cushman & Wakefield and James Aroney, Sophie Tieman and Willem Watson of JLL, The Castlereagh Club forms an integral part of the City Tattersalls network and will be the main “sports” orientated facility of the historic group; underpinned by a club-owned World’s Gym and state of the art sports bar. This location will be also complemented by their fine dining and hotel destination at Pitt Street, which is currently closed for development.
With an impressive street frontage, the property is well located within the core of the Sydney CBD and just 200m to Town Hall Station, QVB and George Street.
According to Jack Harrison of Cushman & Wakefield, the offering features a highly desirable net lease structure, “Providing a ‘clean’ income profile with a ratchet clause at options for a true “set and forget” investment.
“The asset sits in a liquid investment class within Sydney’s CBD and presents to an extremely high standard following the recent major CAPEX upgrades; we anticipate this opportunity to be highly sought after by a multitude of buyers both domestic and off-shore” he said.
JLL’s Willem Watson said, “The attractive long WALE comprising an initial lease term of 12 years with ~9 years remaining and 10 years of options ensures long term income security, and will be a key attribute for savvy investors, looking for a safe haven CBD asset.
“There is a scarcity of quality investment offerings within the Sydney CBD, particularly at this sub $50m price point. Additionally, The Castlereagh Club is an iconic piece of Sydney’s history. The updated offering of a brand-new restaurant designed by celebrity chef Colin Fassnidge is sure to attract significant capital from a large pool of buyers, particularly as the asset also holds more than 100 gaming machine entitlements.