Sydney-based real estate investor Markham has acquired a 100% interest in King Street Wharf, Sydney’s premier waterfront precinct, occupying a landmark site with unparalleled frontage to Sydney Harbour for $125.5 million. Sold by Stonebridge and JLL on behalf of real estate investment manager, LaSalle Investment Management, the sale represents a fully leased yield of 6.02%.
The nearby stretch of harbour has gone through a major transformation with the addition of Barangaroo and with the growth of inner city populations and the increasing tourism trade, King Street Wharf has its role to play in the competitive food and beverage market.
The site of 14 tenancies is 100% leased with a few iconic venues on long-term leases, including Cargo Bar, Bungalow 8 & The Loft and Meat District Co until at least 2029.
JLL’s Head of Retail Investments – Australasia, Simon Rooney said, “Investors continue to target retail assets within CBD locations that will benefit from growing tourism spending, employment growth and rising inner-city high-density residential space. CBD retail assets therefore offer strong income growth potential relative to other retail assets.
“The Sydney CBD is undergoing major changes in terms of new commercial and residential construction, upgraded transport infrastructure and new hotels and tourism-related development, all of which will drive retail and food and beverage spending over the long term.
Home to 14 tenancies including well known venues Cargo Bar and Bungalow 8
The transaction provides Markham with exposure to King Street Wharf, which is perfectly positioned to capitalise on the development and growth in the Sydney CBD that will drive income growth for the asset.”
Stonebridge Director, Carl Molony said, “Since acquiring the premier waterfront restaurant and lifestyle asset, LaSalle has successfully transitioned the offering and income profile to reflect its premium location within the Darling Harbour precinct.
“With the benefit of high historical tenant retention and a WALE in excess of 10 years, coupled with exceptional in-built rental growth, the asset strikes a rare balance of income security, growth and value-add potential.”
Over $850 million of major retail transactions have occurred in the Sydney CBD over the past 12 months and this latest King Street Wharf transaction brings the total close to $1 billion.
Major CBD Retail Transactions – last 12 months
| Property Name | Date | Sale Price | Buyer |
| Soul Pattinson Building – 160 Pitt Street | Aug-18 | $95,000,000 | Kingvest |
| 383 George Street, Sydney (75%) | Apr-18 | $200,000,000 | PGIM Real Estate |
| Queen Victoria Building (50%) | Nov-17 | $301,200,000 | Vicinity Centres |
| The Galeries (50%) | Nov-17 | $143,100,000 | Vicinity Centres |
| The Strand Arcade (50%) | Nov-17 | $111,700,000 | Vicinity Centres |
