Developers and land-banking investors set to fight over $35m Bondi Junction Oxford mall site
The huge site is expected to be hotly contested.
Developers and land-banking investors are set to fight over a huge consolidated site facing Oxford St mall and Spring St in Bondi Junction.
The 1,125sqm listing , which combines the Royal Arcade at 175-181 St Oxford St and the building next door known simply as 171-173 Oxford St, is being pitched as the most significant consolidated property to be brought to market in decades in Bondi Junction.
The buildings, with 30m of frontage to both streets, offer 37 diverse tenants ranging from a health supplements warehouse to a Japanese restaurant with the best Ramen in town.
The potential annual income from the tenancies is close to $2m per year.
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The site faces Oxford St mall in one direction.
The Colliers team of Miron Solomons and Matt Pontey have the listing, in conjunction with Andrew Krulis and Michael Burke of Krulis Commercial, with price expectations of over $35m.
Says Pontey: “Commercial assets of this scale are hard to find in the eastern suburbs.
“And consolidations of 1,125sqm are incredibly rare in that pocket.”
He adds that there’s currently a high demand for office space in the area because sites nearby have been bought by developers for apartment development.
One example is the purchase of 55 Grafton St by prominent developer JQZ, who has high-end residential planned.
“This has displaced a number of occupants within the Junction and this, with tight vacancy in the precinct, is putting upward pressure on both rents and capital values,” Pontey said.
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And Spring St in the other.
Krulis Commercial agent Michael Burke says the 37 tenants have already been put on notice that redevelopment in the future is likely via demolition clauses in all contracts.
“Developers will be looking to capitalise on the generous controls suggesting serious bulk and scale rarely seen across Sydney’s eastern suburbs,” he said.
Interest is expected from buyers both locally and interstate.
Pontey says Waverley Council is keen to reinvigorate the Junction with attractive commercial redevelopment.
“Anyone who picks up this property will look to the future, where council is trying to activate the commercial centre of Bondi Junction and the likely public benefit of commercial office space and retail there.”
Bondi Junction has been an attractive haven for notable sites of a similar nature, with 3a Bronte Rd trading off market for $26.5 million. The deal, which settled earlier this year, saw the Eastern Suburbs Leagues Club invest into the precinct, further strengthening the demand for high quality property in the popular locale.
Expressions of interest close on November 15.
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