Heritage listed office building in Sydney CBD listed: Savills

A five-storey, fully leased and restored heritage building in Sydney CBD’s prized Kent Street is on the market through Savills.

The 332 Kent Street building would appeal to investors looking to take advantage of the growth in the B-grade office market and secure a foothold in the Sydney CBD, according to listing agents are Graeme Russell and Tim Grosmann of Savills Australia.

The Western Corridor in Sydney’s CBD is known for its architectural beauty with its high concentration of heritage-listed buildings.

The  property sits on a 485 sqm site with 1,569.60 sqm of net lettable area. Tenants include Nando’s Australia, LN Pulsation, SkillsIQ, Open Learning Global, Concierge Travel Group and Australian Packaging Covenant. 

The net income is more than $1,000,000 per annum and there is a Weighted Average Lease Expiry (WALE) of 1.42 years.

Tim Grosmann said the building underwent an upgrade and the construction of an additional level set back from the ornate facade in 2002. 

“This is an exciting opportunity for not only an investor looking for prime retail and office accommodation, but an owner-occupier looking for a distinctive property in a vibrant locale to base their office,” he said.

The building has frontage to Kent Street and there is further scope to add a roof top terrace to the building that takes advantage of the vast city skyline views. Anchor points have already been incorporated to the roof that will support the weight of a huge rooftop terrace, he added.

Internally, the property has been modernised with the original arched niches in face brick internal walls and roof trusses remaining exposed to ensure the heritage character of the building. 

A sliding rental expiry profile across the commercial tenancies will allow an astute purchaser to capitalise on the tightening Sydney office leasing market, added Graeme Russell.

“Demand for office space has never been greater and B Grade accommodation in the Western Corridor is the most sought after product in a rising office market. Currently B grade office vacancy is tighter than A grade at 3.7 per cent verses 4 per cent respectively” he said.

The Sydney CBD is Australia’s largest office market, with 5.08 million sqm of total stock and is favoured by many investors and tenants alike, as highlighted by some of the strongest prime property rents and yields across the nation, according to Savills.

The building is being sold through expressions of interest closing September 6.