Iconic Castlereagh Club to go to market for under $50M

The Castlereagh Club will be made available to local and offshore investors on 14 November.

The Sydney CBD site on Castlereagh St is fully leased to the City Tattersalls Group until 2031.

With the site on market, investors can buy into 10 years of options and fixed 3.5 per cent annual rent increases.

The property is part of the City Tattersalls Group network and focuses on sports and recreation. Its income streams come via the World Gym, restaurant and state of the art sports and gaming bar.

Facilitating the sale will be Frederic La Fanue, Bridge Woods and Jack Harrison from Cushman & Wakefield and James Aroney, Sophie Tieman and Willem Watson of JLL.

“The asset sits in a liquid investment class within Sydney’s CBD and presents to an extremely high standard following the recent CAPEX upgrades,” Harrison said.

“We anticipate this opportunity to be highly sought after by a multitude of buyers both domestic and offshore.”

The Castlereagh Club is just minutes from the future Pitt St Metro station and within 200m of Town Hall station, QVB and George St.

Given its advantages, including income stream and location, Harrison called this is a set and forget investment.

JLL’s Willem Watson agreed.

“The attractive long WALE (weighted average less expiry) comprising an initial lease term of 12 years with roughly nine years remaining and 10 years of options ensures long term income security, and will be a key attribute for savvy investors, looking for a safe haven CBD asset,” Watson stated.

“There is a scarcity of quality investment offerings within the CBD, particularly at this sub $50 million price point. Additionally, The Castlereagh Club is an iconic piece of Sydney’s history.

“The upgraded offering of a brand-new restaurant, designed by celebrity chef Colin Fassnidge is sure to attract significant capital from a large pool of buyers.”

Jonathan Jackson - 14-11-22