- Offshore groups from Hong Kong, Malaysia and Singapore have recorded strong interest in what little commercial stock is for sale, according to property agency Savills
- Recently, a purchaser new to the market from Hong Kong has snapped up Australian architect Harry Seidler’s first commercial project for $23.3 million in Haymarket, which equates to a 3.1 per cent net passing yield
- According to Andy Hu and Jordan Lee of Savills Australia, who exclusively sold the property, the sale of Workhouse at 398-402 Sussex Street is one of the lowest yields recorded for freehold assets in Haymarket for quite a while and at $24,000 per square metre
- The Workhouse was Seidler’s first commercial project and the first beam-free building, an impressive feat of engineering for its time in 1954
- The existing net lettable area of 1,097sq m includes three super prime retail tenancies on ground and basement levels on a 177sq m site area with a street frontage of 14.94m
Offshore groups from Hong Kong, Malaysia and Singapore have recorded strong interest in what little commercial stock is for sale, according to property agency Savills.
The agency pointed towards the recent sale of 191 Thomas Street, Haymarket among others as an example of this interest in motion as it said signs of recovery within the commercial property market are on the rise.
“Quality commercial assets continue to be at the forefront of investor attention, and we anticipate that prime and secondary yields diverge as a result of this,” Savills Australia joint state head Asia Markets Andy Hu said.
Recently, a purchaser new to the market from Hong Kong snapped up Australian architect Harry Seidler’s first commercial project for $23.3 million in Haymarket, which equates to a 3.1 per cent net passing yield.
According to Andy Hu and Jordan Lee of Savills Australia, who exclusively sold the property, the sale of ‘Workhouse’ at 398-402 Sussex Street is one of the lowest yields recorded for freehold assets in Haymarket for quite a while and at $24,000 per square metre.
They also said it is one of the highest office rate per square metre recorded in the area.
“This is a quality offering and we had quite a few very high profile offshore family offices were bidding for this generational asset,” Hu said.
The Workhouse was Seidler’s first commercial project and the city’s first beam-free building, an impressive feat of engineering for its time in 1954.
According to Jordan Lee, joint state head, Asia Markets of Savills Australia, the building recently undergone an extensive refurbishment, with an estimated expenditure of $2m plus.
The eight-story building was refurbished in 2019 to include basement shops, two retail tenancies, five floors of office space, and a rooftop terrace. With the building boasting an impressive glass frontage shaded by rows of exterior operable louvres – the building’s signature features.
“There is planning control for B8 – Metropolitan Centre with a floor space ratio – 7.5 :1 (additional 1.5:1 can be granted STCA) and a height limit of 50 metres,” Hu said.
“This was a unique opportunity to acquire a generational and iconic asset located in the absolute core of Sydney’s renowned Haymarket,” he continued.
The existing net lettable area of 1097 sqm includes three super prime retail tenancies on ground and basement levels on a 177 sqm site area with a street frontage of 14.94m.
