City development to take off with Sydney offer

The city tower market is getting a much-needed boost with the offer of a well-known block in the city core.

75 Elizabeth Street will bring out big investment and development players chasing Sydney towers.

An Asian investment group is looking to sell an office block in Sydney’s Elizabeth Street with hopes of near-$100m as the city’s market swings back into favour.

Office players are on the hunt for counter-cyclical plays and some are also chasing longer-term development opportunities. Sydney property circles are abuzz with talk that Lendlease is rekindling its interest in Shimao’s 175 Liverpool Street, and Charter Hall is chasing a capital partner for 201 Elizabeth Street, where it is chasing a capital partner.

The Elizabeth Street block, owned by Glory Orient Investments, has been held as an office investment since it was bought for $67m in 2014, and could be held as an office building ahead of any longer-term conversion play.

The private Asian group wants to sell its long-held B-grade asset on the prominent corner at 75 ­Elizabeth Street. It has dual frontages to Elizabeth and King streets, and views that make it attractive to residential and hotel players.

The building is also positioned in the heart of the financial core, allowing for a potential office play for investors chasing value-add investments. The property is surrounded by the city’s major office towers, Westfield Sydney, and the Pitt Street Mall.

The boutique B-Grade office building comprises 6141sq m of net lettable area across 15 storeys, with views over Hyde Park. It has access to the Supreme Court of NSW and the luxury King Street retail precinct, which houses flagship stores such as Tiffany & Co., Cartier, Chanel, Hermès, Dior, and Valentino.

Real estate agency Savills is handling the building. “The price point, corner position, location, intergenerational characteristics and value-add opportunities will be well received by the market, as investors recognise the scarcity of the offering,” sales agent Savills’ Ben Azar said.

Co-agent, Savills’ Adrian Bokolis, said offshore private and institutional capital saw relative value in the Sydney office market when compared to alternate markets across Asia, Europe and the US.