$80m Haymarket office deal defies market nerves

The office building at 191 Thomas St in Haymarket.
The office building at 191 Thomas St in Haymarket.

A private buyer has swooped on an office block in Sydney’s central precinct for close to $80 million, with the deal being finalised in a sign that wealthy players are willing to step up even if institutions pull back.

The purchase of 191 Thomas St in Haymarket, a touch above initial marketing hopes, is a pointer to the pools of private capital that my be waiting to pounce following dislocation by the coronavirus.

The purchaser has picked up an eight-storey office building, with ground-floor retail and basement parking for 16 cars, that spans a net lettable area of 4797sqm.

The building was offered by Vince Kernahan, Steam Leung, Joseph Lin and Tom O’Neill of Colliers International, and Jordan Lee, Andy Hu and Tim Grosmann of Savills Australia, but they did not comment.

The buy is partly predicated on the Sydney CBD’s historically low vacancy rates and accelerating rental growth, as well as the longer-term trend for investors and tenants to buy at the southern end of the CBD.

Charter Keck Cramer’s Bennett Wulff was transaction ­adviser for the vendor, the CPSU. The block is fully occupied, providing a current net passing income of $2.7 million.

This article originally appeared on www.theaustralian.com.au/property.