Sydney retail icon slides onto market
Sydney boasts more than its fair share of iconic landmarks but few of them can be mentioned in the same sentence as a property deal.
The famed Coca Cola sign sits atop this retail plaza of over 4400sqm being offered for sale by LJ Hooker Commercial – making it one of the most recognised and visible properties in the inner city and a focal point for Sydneysiders and visitors alike.
This high performing retail convenience centre is a key part of the gentrification of a once notorious inner-Sydney area.
Less than a kilometre from Sydney’s town hall on the main thoroughfare leading to the city’s prestigious eastern suburbs, the area is still a vibrant entertainment precinct.
While it boasts some of the city’s best bars, cafes and restaurants there has been a steady shift since the mid 1990s towards residential development.
Indeed, the property is sited below the redeveloped Hyatt Hotel, now the highly sought-after Zenith Apartments, with several other major residential towers nearby.
When people talk about landmarks in Sydney, they mention three – the opera house, the harbour bridge and the Coke sign
As a result the area now has one of Sydney’s highest population densities, with more than 30,000 people within one square kilometre.
The sign above the retail precinct has been the unofficial entrance to Kings Cross for a generation, having been erected in 1976, and is the largest billboard in the southern hemisphere.
It’s a strong visual drawcard for the retail space, which features a Coles supermarket as the anchor tenant with a lease in place until 2022, and a host of speciality retailers.
The demand for services from residents and significant visitor traffic remains high.
Agent Warren Duncan, of LJ Hooker, says: “When people talk about landmarks in Sydney, they mention three – the opera house, the harbour bridge and the Coke sign”.
There will never be the opportunity to build something of this size in this area ever again and it can’t be replaced
The property is tightly held, with 98.5 per cent of the lettable space currently taken up, and it thrives as a strong-performing retail convenience centre, with excellent exposure for retail tenants, the ability to operate for extended trading hours and a high volume of foot traffic.
Public transport links are strong with Kings Cross train station nearby, servicing more than 22,000 commuters each day.
“This is an extraordinary property for several reasons but most notably because of its sheer size. There will never be the opportunity to build something of this size in this area ever again and it can’t be replaced. There are 33 specialty stores and kiosks as well as Coles and the focus is on convenience, with a good mix of food and services,” Duncan says.
LJ Hooker estimates the net income for the centre, when fully leased, at more than $2.4 million a year and says the property still has scope for improvement and potential capital growth.
“The Kings Cross-Potts Point area has gone through a massive gentrification over the past 12 years,” Duncan says.
“Of the 12 major hotels in the precinct, 10 have been converted to residential buildings. The shopping centre itself has had a major renovation – it was effectively reconfigured and rebuilt and re-opened in 2008.”
