The precinct, which surrounds King and Castlereagh Street, is highly coveted by leading global luxury fashion brands, vying for a coveted piece of real estate.
According to Miron Solomons, National Director, Sydney Metro Sales, Investment Services, at Colliers International, you don’t often see International brands such as Hermes committing $100m to secure sites.
“This obviously underpins the demand, success and intrinsic value of luxury retail and property in this precinct. Never before have we seen a tenant show such confidence in a market, whereby they opt to purchase a site instead of simply signing a lease” he said.
Hermes aren’t the only global luxury retail brands pouring money into this precinct, with other examples including Louis Vuitton’s $11m refurbishment at 365 George Street and Tiffany & Co.’s $30m* fit-out at their new flagship store at 175 Pitt Street, on the corner of King Street.
In light of this, an extremely rare opportunity to acquire a trophy asset is set to heat up the precinct as 106 King Street goes to auction later next month.
Just moments from Pitt Street Mall, 106 King Street is an iconic corner landmark Heritage building, offering 312.5sq m* across the ground floor, basement and four levels of office space including a rooftop terrace, another rare offering in the CBD.
The historically rendered brick building was designed in the Victorian Italianate style by the well-known architectural practice of Sheerin & Hennessy in 1887 and was heritage listed in 1989. The building forms part of a cohesive group of late 19th and early 20th century buildings and facades around the intersection of Pitt and King Streets.
Positioned to capitalise on the resurgence of the mid-city precinct including the new Light Rail and Dexus $170m retail transformation to the MLC Centre which includes plans to revive the Theatre Royal, directly opposite 106 King Street, this is an unrepeatable opportunity to acquire a Heritage and vacant freehold property surrounded by the Top 5 luxury global brands.
The property is exclusively for sale through Miron Solomons and Harry Bui of Colliers International and Jordan Lee and Andy Hu of Savills Australia.
At a time where luxury brands are fighting for a premium position in what is fast becoming Australia’s luxury retail precinct, 106 King Street is ready to be occupied by a number of luxury brands looking to secure flagships stores amongst competing global brands.
Mr Solomons believes “This landmark freehold would also make a statement as an amazing corporate or creative HQ and will be offered with some exceptional plans to upgrade and refurbish the existing and vacant office levels”.
“There has been a limited supply of assets of this class offered in the Sydney CBD over the last 12 months, which has further whet the appetite of savvy investors.
“I don’t think we’ve seen more than a handful of freehold buildings in the CBD, and certainly not in this precinct, offered to the market under $100m for a few years now,” he said.
According to Jordan Lee, Joint State Head, Asia Markets Savills Australia, “Local, national and international investors see high end retail as a status symbol and an asset class which is well known and respected across the Asia Pacific region, if not, the world.
“To be able to own a freehold heritage asset in the heart of the Sydney CBD’s retail precinct would be considered a dream come true for many buyers.
“We are expecting a wide range of interest from Australia and Asia, which should make for a very interesting auction” he said.
106 King Street Sydney is for sale via auction through Savills Australia and Colliers International on Thursday 21 November 2019.