Sydney’s entire King Street Wharf for sale

One of Sydney’s most iconic public precincts is for sale, with the entire King Street Wharf area on the market amid a retail property boom in the city.

The LaSalle Investment Management-owned waterfront precinct, home to renowned venues and eateries Cargo Bar, Bungalow 8 and Meat District Co, could net as much as $130 million, according to some estimates.

The properties, which lie directly between Darling Harbour and Barangaroo, span 5651sqm of retail space and feature 14 restaurants, all of which are tenanted.

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While the offering is split into two retail stratum lots, known as Precinct 1 and Precinct 3, they are able to be acquired together or individually.

Bungalow 8 is one of 14 venues within King Street Wharf.

JLL’s Simon Rooney and Carl Molony and Philip Gartland of Stonebridge are marketing the Wharf.

Rooney says there continues to be significant interest in food and beverage offerings in and around Sydney’s inner city.

“King Street Wharf will benefit from the strong consumer trend towards food and beverage and provides exposure to a high-growth segment of the retail sector. Cafes, restaurants and takeaway food has delivered the highest rate of annual spending growth of any retail category over the long-term,” Rooney says.

“Major Sydney CBD retail assets are rarely offered for sale and we see this asset as an opportunity to gain exposure to the extensive urban regeneration which is occurring all around the Darling Harbour, King Street Wharf and Barangaroo precincts. New infrastructure, hotels and mixed-use developments will enhance the profile of the precincts and drive income growth for the asset.”

King Street Wharf is set to sell for as much as $130 million.

The 14 tenants are all on long-term leases, with a weighted average lease expiry of more than 11 years.

Molony says LaSalle has poured money into revamping the precinct.

“Since acquiring the premier waterfront restaurant and lifestyle asset, the vendor has successfully transitioned the offering and income profile to reflect its premium location within the Darling Harbour precinct,” he says.

“With the benefit of high historical tenant retention and a WALE in excess of 11 years, coupled with exceptional in-built rental growth, the asset strikes a rare balance of income security, growth and value-add potential.”

King Street Wharf is being sold through an international expressions of interest campaign, which closes on March 22.