Foreign buyers to join rush for Sydney CBD towers
Chinese developers and local players with offshore backing are tipped to chase the next round of towers being offered in Sydney’s central business district and inner city with more than $200 million of property in play.
The largest offer is in Sussex St, where a 19-level office tower overlooking Darling Harbour has been listed for sale by Deutsche Asset Management.
The tower, which financial services group ING shifts out of next year, is likely to be converted into a residential development, and could sell for more than $130 million.
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CBRE’s Richard Butler, Josh Cullen, Mark Hansen and Sharon Yang are selling the 140 Sussex St property, which also includes a historic warehouse occupied by Kingsley’s Steakhouse alongside the 11,742sqm A-grade office tower.
“We expect sophisticated developers, onshore and offshore, private and publicly listed, to show strong interest in the site, with a view to unlock its potential with a mixed use or residential development,” Butler says.
The site can accommodate a top-class development with up to 208 apartments over 35 levels.
AMP Capital’s recent sale of 71 Macquarie St, at Circular Quay, to Chinese group Macrolink and local developer Landream for $158.5 million has set a steep benchmark.
Chinese groups are now seeking to develop the sites they have acquired over the past year.
In Sydney’s inner city suburb of Rosebery, private Chinese developer Maville has lodged plans for a $93 million apartment project on a site it bought last year for $48 million.
The industrial site at 12-24 Rothschild Ave is to be transformed into about 260 high-end apartments after being sold by Sussman & Company in a deal last year brokered by Michael Crombie and James Bellew of Colliers International.
Maville is best known for its plans to convert a 333 Kent St site into a 24-storey residential tower with serviced apartments.
The company also picked up last year an industrial building at 219 Botany Road, Waterloo, in a $29.5 million deal brokered by Brian McInally and Trent Gallagher of Colliers International, and has also been identified for a residential play.
This article originally appeared on www.theaustralian.com.au/property.