Barangaroo’s flow on effect sees $58.5 million in Walsh Bay transactions
The much-discussed development of Sydney’s Barangaroo is potentially behind an increase in demand in neighbouring Walsh Bay, said to be benefiting from the flow on effect.
Pier 8 & 9 at Walsh Bay, along with 36 Hickson Road, a heritage building, have sold for a combined $58.5 million to a Swiss investment company, sitEX, and a Sydney-based investor respectively.
Pier 8 & 9 was owned by Matt Handbury of Murdoch Media and is a heritage finger wharf.
The pier, at 7,500 square metres, had apparently seen a lot of interest, finally being purchased by sitEX, who had also acquired 117 Harrington Street in 2013 for $13 million.
Design firm Hassell Services has signed a 10-year lease for 2,660 square metres of space, while Yahoo!7 and Murdoch Media are also tenants in the building. Hassell architect firm relocated to this site from their previous space in The Rocks, and are working on the redesign of the $2.5 billion Darling Harbour exhibition centre. The rent is undisclosed.
Meanwhile, 36 Hickson Road, known as 36 The Bond, is a 1,200 square metre building that has been refurbished into an office/retail space on a freehold strata title. New tenants will be sought for the space once vacated by current tenant, Lend Lease.
Gavin Lloyd, CBRE, who negotiated the deal, said that investors are looking to capitalize on the rejuvenation benefits of Barangaroo, which is to be Australia’s largest mixed use waterfront development.
“Walsh Bay and Hickson Road have been recognised for many years as a premier address for creative tenants,” Lloyd said.
“The $6 billion Barangaroo precinct has heightened the focus on these neighbouring markets and underpinned a surge in tenant and buyer demand, with investors focusing on the provision of new infrastructure, amenity such as the planned Headland Park and its associated cultural facility, as well as significantly improved transport links.”
It’s not just commercial opportunities attracting attention either, with residential conversions also seeing interest, such as the first released apartment stage at Barangaroo South.
In January 2012, John McGrath sold his Walsh Bay apartment for $5.5 million, a drop on the amount it was purchased for.