Heritage Listed Gem in Sydney’s Western Corridor

09 August 2017

The Western Corridor’s high concentration of heritage listed buildings in Sydney’s CBD has resulted in the area becoming known for its architectural beauty. With appealing streetscapes full of heritage facades, the area is popular with image conscious tenants and the general public alike.

Local private investors are set to release a five storey, fully leased and restored heritage building through Graeme Russell and Tim Grosmann of Savills Australia, with the building presenting a compelling opportunity for an investor looking to take advantage of the growth in the B grade office market and secure a foothold in the Sydney CBD.

Located at 332 Kent Street, the property sits on a 485sq m site with 1,569.60sq m of net lettable area. Tenants include Nando’s Australia, LN Pulsation, SkillsIQ, Open Learning Global, Concierge Travel Group and Australian Packaging Covenant. The net income is more than $1,004,950 per annum and there is a Weighted Average Lease Expiry (WALE) of 1.69 years.

According to Tim Grosmann, Director of Capital Transactions at Savills, the building underwent a complete revitalisation of the existing levels of the building and the construction of an additional level set back from the ornate facade in 2002. There is scope to add two car spaces without the need for structural alterations.

“This is an exciting opportunity for not only an investor looking for prime retail and office accommodation, but an owner-occupier looking for a distinctive property in a vibrant locale to base their office.

“Rarely do freehold buildings of this size and location become available. Strategically located in the western corridor between King and Market Streets, the property is in the precinct undergoing one of the largest transformations the city has ever seen”.

Mr Grosmann went on to say that the building boasts a 28 metre street frontage along busy Kent Street and there is further scope to add a roof top terrace to the building that takes advantage of the vast city skyline views. Anchor points have already been incorporated to the roof that will support the weight of a huge rooftop terrace.

Internally, the property has been extensively modernised with the original arched niches in face brick internal walls and roof trusses remaining exposed to ensure that the heritage character of the building is celebrated. Base building works included new lifts, air-conditioning and suspended light fittings.

According to Graeme Russell, Director of Capital Transactions at Savills, a sliding rental expiry profile across the commercial tenancies will allow an astute purchaser to capitalise on the tightening Sydney office leasing market.

“Demand for office space has never been greater and B Grade accommodation in the Western Corridor is the most sought after product in a rising office market. Currently B grade office vacancy is tighter than A grade at 3.7 per cent verses 4 per cent respectively” he said.

The Sydney CBD is currently Australia’s largest office market, with 5.08 million square metres of total stock and is considered a primary location for the head offices of many of Australia’s top listed companies. The CBD is favoured by many investors and tenants alike; a fact highlighted by some of the strongest prime property rents and yields across the nation.

Market dynamics in Sydney CBD have been affected by stock withdrawals associated with the Sydney Metro development. Tenants displaced due to buildings withdrawn for this development or for other redevelopment are now forced to compete with each other for limited options in the secondary market, which is putting upward pressure on rents.

332 Kent Street, Sydney is offered to the open market by way of Expressions of Interest, closing Wednesday, 6 September 2017 at 5pm (AEST).

 
 

Key Contacts

Tim Grosmann

Tim Grosmann

Director
Capital Transactions

Savills Sydney

+61 (0) 2 8913 4818

 

Jessica Freeman

Jessica Freeman

Director - PR NSW
Corporate Services

Savills Sydney

+61 (0) 2 8913 4826