King Street wharf on the market for $130 million
Sydney’s waterfront restaurant strip King Street Wharf in the CBD has now been put on the market with a $130 million asking price.
The precinct, located between Darling Harbour and Barangaroo, comprises 5651 square metres of retail space and has tenants that include Cargo Bar, Bungalow 8 and The Loft, Meat District Co.
They occupy their spaces until at least 2029.
Global property giant LaSalle Investment Management plans to make a good profit on the sale after buying it from Canadian giant Brookfield on a six per cent yield less than two years ago, paying $90 million for the leasehold interest over the Darling Harbour waterfront retail asset.
Brookfield Multiplex built the King Street Wharf project, which was a former maritime industrial area
It has two retail stratum lots known as Precinct 1 and Precinct 3, which are able to be acquired individually or in one line.
King Street Wharf marketing is being managed by Simon Rooney of JLL and Carl Molony and Philip Gartland of Stonebridge.
"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," Mr Rooney told the Australian Financial Review.
"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."
Mr Molony says the big drawcard for investors is the premium location within the Darling Harbour precinct.
Added to that is the high historical tenant retention rate, a weighted average lease expiry of 11 years, strong in-built rental growth and plenty of value-add potential.
"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," Mr Molony told the Australian Financial Review.
by Leon Gettler, February 6th 2017.
