The who’s who of Sydney’s property market, alongside a number of international retail heavy hitters were out in force for yesterday’s auction of 106 King Street, Sydney, a sign that the CBD’s luxury retail precinct which surrounds King and Castlereagh Street, is still and will always be, hot property.
A local, private owner occupier snapped up the iconic freehold, vacant Heritage building for $23.5 million (representing a land rate of $270,000 per m2), outbidding a number of global players, many of which are in the retail/ fashion sector.
Just moments from Pitt Street Mall, 106 King Street offers 312.5m2 across the ground floor, basement and four levels of office space including a rooftop terrace, and the historically rendered brick building was designed in the Victorian Italianate style by the well-known architectural practice of Sheerin & Hennessy in 1887 and was heritage listed in 1989.
This sale follows Australia’s record breaking strata sale of 155 King Street to luxe brand Hermes for $100 million, who will use the property as their flagship Sydney store, with neighbours including Dior, Cartier, Chanel, Boss, Tiffany & Co. and Bulgari.
Tiffany & Co – Sydney flagship
The building was sold by Miron Solomons and Harry Bui from Colliers International and Jordan Lee and Andy Hu from Savills Australia and forms part of a cohesive group of late 19th and early 20th century buildings and facades around the intersection of Pitt and King Streets.
According to Miron Solomons, National Director, Sydney Metro Sales, Investment Services, at Colliers International, this is a record breaking result for Sydney’s lux hotspot.
“It’s not often that such a high calibre asset goes to auction in the Sydney CBD and it was impressive to see the who’s who of Sydney’s property market whipping out their calculators and cheque books, in an attempt to secure this amazing property.
“In the end, a luxury owner occupier was triumphant in securing a forever home; which further solidified the intrinsic value of the entire precinct” he said.
According to Jordan Lee, Joint State Head, Asia Markets Savills Australia, the on market campaign saw a range of interest from around Australia and across Asia Pacific.
“We had a lot of High Net Worth privates looking for flagship assets and a lot of clients in Asia hoping to secure a flagship presence in the Sydney CBD” he said.
Solomons said infrastructure investment from both the public and private sectors has underpinned demand both locally and offshore and 106 King Street is positioned to capitalise on the resurgence of the mid-city precinct including the new Light Rail and Dexus $170 million retail transformation to the MLC Centre which includes plans to revive the Theatre Royal, directly opposite the property.
Artist Impression: MLC Centre, Castlereagh Street
