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News release

SYDNEY

Major redevelopment opportunity in Sydney CBD hits the market

Office tower at 59 Goulburn Street has development potential across the residential, commercial office and hotel sectors


​JLL and Colliers International are offering the Sydney CBD office tower at 59 Goulburn Street on behalf of Roxy-Pacific Holdings Limited, via an International Expressions of Interest campaign closing on 23 March.


The freehold asset is a 98% occupied, 23-level office tower with a Net Lettable Area of 18,867 sqm and ground floor retail. It is directly opposite the bustling World Square precinct in the Sydney CBD, which is close to a range of transport and amenity. The asset offers a Weighted Average Lease Expiry of 2.3 years and the NSW Government as an anchor tenant. Estimated passing income is $8.13 million.

The asset has three viable development options. These are; a repositioning of the existing asset providing potential for significant rental upside; redevelopment into a new commercial office tower; or redevelopment into a 38-storey mixed-use tower comprising retail and commercial, 407 hotel suites, 90 residential units and 94 car parks. The asset currently has Stage 1 Development Approval for the potential hotel and residential development.

JLL's National Directors of Sales and Investments – NSW, Ben Hunter and James Aroney, and Head of Metropolitan Sales and Investments – NSW, Sam Brewer are the agents on the campaign, in conjunction with Colliers International's National Directors Vince Kernahan & James Girvan. Price expectations are upwards of $150 million.

Director - Roxy Pacific Australia, Ben Hopkins said, "After entering the Australian market in 2014 we have managed to build up a robust portfolio of both development and investment assets across Australia with value over $500m. We have always had a long term vision for Australia, with its stable economy, political system, and great service resources. Australia has been a fast-growing market over the past 3 years but we have always managed to maintain our values of being a prudent investor. After fielding numerous offers for 59 Goulburn St Sydney we have decided to offer this landmark freehold opportunity with exciting re-development potential to the market."

JLL's Mr Hunter said, "This is a great opportunity for developers seeking opportunities in the Sydney CBD. The vendor had previously fielded a number of offers for the asset. With it now officially on the market and its three-fold potential, we expect to see strong interest from a diverse group of buyers."

JLL's Mr Aroney said, "This is an opportunity of great potential. Its central location and development options will allow the eventual purchaser to create a new offering amongst one of Sydney's busiest CBD precincts. There is ongoing demand for office assets of this nature in Sydney, particularly when there is room for significant rental upside."

Colliers International's Vince Kernahan said, "This asset will provide developers the interim cash flow and the opportunity to develop what will be an iconic hotel and residential landmark sorely needed by the market given the recent opening of the International Convention & Exhibition Centre and the obvious shortage of such accommodation."