The Community and Public Sector Union has announced the divestment of a long-held asset at Haymarket in Sydney's central precinct.

The eight-storey office building at 191 Thomas Street, which incorporates ground floor retail and basement parking for 16 cars with a net lettable area (NLA) of 4,797 sqm, is set to hit the market later this month through Savills Australia and Colliers International. 

The building is 100 per cent occupied, providing a current net passing income of circa $2.7m with significant additional rental upside. 

Transaction advisor on behalf of the vendor CPSU, Bennett Wulff, said the intention to diversify the organisation’s asset base coupled with the "currently robust market conditions" have led to the decision to sell the asset.

At a glance: 

• The Community and Public Sector Union has announced the divestment of a long-held asset at Haymarket in Sydney's central precinct.
• The site is positioned within the rapidly transforming Central Precinct and sits within a future zone of high density under the draft Central Sydney Planning Strategy, with the new light rail only 150 metres (approx.) from the property and Central Station 250 metres (approx.) away.
• The asset is being marketed through Vince Kernahan, Steam Leung, Joseph Lin and Tom O’Neill of Colliers International and Jordan Lee, Andy Hu and Tim Grosmann of Savills Australia.

There has been unprecedented demand from both offshore and local capital for commercial assets in the Southern CBD and it is anticipated that the precinct’s record-low vacancy, coupled with the lack of speculative office supply under construction, will see the precinct continue to enjoy strong levels of rental growth.

With a regularly configured 823.5 sqm land area, the site is positioned within the rapidly transforming Central Precinct and sits within a future zone of high density under the draft Central Sydney Planning Strategy, with the new light rail only 150 metres (approx) from the property and Central Station 250 metres (approx) away.

According to Savills Australia Asia Markets Joint State Head, Jordan Lee, Haymarket was already benefiting from the State Government’s Urban Transformation Strategy, which is set to revitalise the Central Station precinct.

“Both Central Walk and the Sydney Metro will increase connectivity and accessibility elevating the district to a thriving commercial office destination," he said.

The building at 191 Thomas Street has valuable 9B certification and has the benefit of the major tenant, education provider UTS Insearch, occupying approximately 75 per cent of the property’s NLA. 

Colliers International National Director Vince Kernahan said Sydney CBD’s southern precinct was now a recognized Innovation & Technology Precinct. 

“The recent announcement by Atlassian to occupy a 50,000 sqm building at Lee Street, Broadway in 2024 has shone a light on the precinct," he said.

"Leasing demand for STEM businesses (Science, Technology, Engineering & Mathematics) is now greater than for Finance & Insurance, which has been the dominant office space user for decades.” 

 The building is for sale via an expressions of interest campaign closing on March 11, 2020.

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