Telstra House in Sydney’s Elizabeth Street offered for sale

An office building with Telstra as anchor tenant in Sydney CBD has been listed for sale. 

The 100% freehold interest at 231 Elizabeth Street comprises 15 levels of office space and two ground-floor retail areas.

The property is being marketed by Colliers International’s Vince Kernahan, James Barber and James Girvan and JLL’s Rob Sewell, Simon Storry and Paul Noonan on behalf of Glory Property II Investment Pty as The Trustee for Glory Property II Investment Trust. 

“The building’s prominent Hyde Park location, large efficient floor plates together with the repositioning opportunities will ensure strong participation from both local and off-shore capital,” Simon Storry said.

He added that leasing demand was above average over the past four years in the Sydney CBD, and this combined with the large portion of office withdrawals over the past 18 months has resulted in the vacancy rate trending down to 6.4% - the lowest level since 2008.

Colliers’ Vince Kernahan said the 2,300 sqm ‘A’ grade building would appeal to both investors and long-term developers because of the sound cash flow from one of Australia’s largest publicly listed companies (Telstra) and its location overlooking Hyde Park and the Sydney Harbour.

231 Elizabeth Street is on the corner of Elizabeth Street, Bathurst Street and Castlereagh Street, and offers direct undercover access to Museum Railway Station.

The property was completed in 1987, and underwent an $18 million refurbishment in 2010

The property is being sold through expressions of interest closing in late October.

The Singapore-based Chinese investment house Bright Ruby purchased 231 Elizabeth Street in 2013 from Investa Property Group and its main wholesale office fund, ICPF, added The Australian.

The tower could win bids around the $350 million mark from both offshore and local developers.