Sydney’s office market is one of the bestperforming in the country, and following numerous stock withdrawals, demand is at an all-time high. The recent sale of 66 Goulburn Street for an impressive $252 million is a testament to the rising value of A-grade office buildings in Sydney’s CBD.
The sale was brokered by Knight Frank’s Jonathan Vaughan, John Bowie Wilson and Neil Brookes on behalf of a GDI Property Group and was snapped up by Singapore-based real estate firm, Ascendas- Singbridge.
Knight Frank’s Associate Director, Commercial Sales, NSW Jonathan Vaughan said the Sydney office market is a key area of interest for investors at the moment.
“Sydney’s office market is outperforming and demand is through the roof. The new owners will benefit from very strong effective rental growth going forward, especially with the large amount of office withdrawals in the Midtown Precinct.”
The stunningly designed 66 Goulburn Street boasts 22,929sqm of lettable space over 24 column-free office floors, with a ground floor retail tenancy and basement carparking spaces. With a striking architectural design, the building features floor to ceiling windows and impressive 360-degree views across Hyde Park, Sydney Harbour, Central and Darling Harbour. Major tenants include Samuel Griffith Chambers, Government Property NSW, Prudential Investment Co, William Buck and the Copyright Agency.
According to John Bowie Wilson, Knight Frank’s Head of Commercial Sales, NSW, the investment by GDI to reposition the asset has paid off in spades.
“Over the last two years, GDI has invested significant capital into the asset, and it now provides a WALE of just over 5 years. With an excellent location opposite the Local, Family and District Courts, the strong tenant base is made up of government entities and legal and professional service firms.”
Occupying a highly-prominent position within the Midtown precinct and positioned in the heart of Sydney’s Legal precinct, 66 Goulburn Street is a landmark corporate address. Tenants enjoy the close proximity to Sydney’s most prominent retail and entertainment precincts, restaurants, bars and cafes.
The building’s central CBD location affords it excellent transport connectivity, and the area is well serviced by a range of public transport including the nearby Museum and Town Hall Stations and numerous bus interchanges. 66 Goulburn Street is positioned to benefit further from the substantial regeneration of Sydney’s transport system. The development of the Sydney Metro, Light Rail and planned urban renewal projects set to be delivered throughout the next decade will improve the property’s connectivity and further enhance the precinct.