Surry Hills office building sold for $33.5 million
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Aug 19, 2019
Surry Hills office building sold for $33.5 million
A Surry Hills freehold office building has changed hands for $33,530,000, representing a net yield of 4.5 per cent.
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CBREThe building at 1-9 Buckingham Street.
The sale of a freehold office building in Sydney's Surry Hills has set a new record for city fringe price per square metre after it was transacted for $33,530,000.
The purchase of 1-9 Buckingham Street by a Chinese investor represents a yield of 4.5 per cent and a rate of $19,770 per square metre, passing the mark set by 19 Foster Street when it sold for $39.5 million in February at a rate of $12,500 per square metre.
CBRE’s City Fringe team of Nicholas Heaton, Gemma Isgro and Nick Wheatley negotiated the sale of the property on behalf of RT Health Fund.
At a glance:
- A freehold office building at 1-9 Buckingham Street, Surry Hills has sold for $33,530,000, reflecting a yield of 4.5 per cent.
- CBRE’s City Fringe team of, Nicholas Heaton, Gemma Isgro and Nick Wheatley negotiated the sale of the property on behalf of RT Health Fund.
- The sale reflects a rate of $19,770 per square metre, setting a new record for the city fringe area.
Mr Heaton said the sale has reset the benchmark for commercial property in Sydney’s City Fringe and suburban markets.
“There is a huge force of private capital looking for a higher return than banks can offer, and commercial property is now the instrument of choice,” he said.
The property was purchased by a private Chinese investor represented by the Sydney-based boutique property firm Centennial Property Group.
“With infrastructure projects providing better amenity to tenants, Surry Hills is now demanding CBD rental rates while providing a more creative alternative to the corporate CBD image.”
Ms Isgro said there had been a strong response throughout the sales campaign.
“The campaign received a high level of interest from local, interstate and international buyers - particularly from the European and Chinese markets - yielding 441 enquiries which led to 51 inspections and 18 offers in the first round,” she said.
Similar to this:
Dexus share of Elizabeth Street office building sold for $157.5 million
Important Information:
Contact details:
Gemma Isgro
CBRE
+61403230085
Email
9909
8359
Gemma Isgro
Nicholas Heaton
CBRE
+61408025097
Email
9909
8365
Nicholas Heaton
