_Waterloo commercial site sells for record rate and yield

• A commercial property at 719-721 Elizabeth Street has sold for $12.7m in a deal negotiated by Knight Frank
• It was purchased by SHMH 3 Pty Ltd from Kavango Pty Ltd
• The buyer intends to redevelop the 1,127sq m site into a mixed-use development in the future
• The property is currently occupied by a building with 1,192sq m of net lettable area, which is tenanted by ASX-listed Accent Group
• The asset sold for a record rate for the area and record passing yield

Sydney, Australia – A SITE ripe for future redevelopment in the inner Sydney suburb of Waterloo has sold for a record rate and passing yield.

The property at 719-721 Elizabeth Street consists of a 1,127sq m site with a building currently on the site providing a net lettable are of 1,192sq m, with 28 underground car spaces.

ASX-listed Accent Group occupy the recently refurbished building, which is ideal for its creative office and merchandise/showroom usage.

The asset was purchased for $12.7 million by SHMH 3 Pty Ltd from Kavango Pty Ltd in a deal negotiated by James Masselos, Demi Carigliano and Anthony Pirrottina of Knight Frank.

The purchaser intends to redevelop the site into a mixed-use development when the tenant vacates the building in the future.

Mr Pirrottina said the property sold for a rate of almost $5,650 per square metre of developable floor area, which was a record for a development site in Alexandria and Waterloo.

He said the net passing yield of 3.38 per cent was also a record.

“The yield is reflective of what the price would have been at the peak of the market 12 to 18 months ago,” said Mr Pirrottina.

“The Expressions of Interest campaign for the property resulted in 180 enquiries and six offers.

“The strong demand and record price demonstrates that well located properties with good future upside potential are still achieving very strong prices.

“The pricing gap between A Grade and B Grade assets has widened, with premium assets still achieving prices close to their peak.”

Mr Masselos said the property had offered a solid investment opportunity.

“It has outstanding passing income with a secure lease underpinned by an ASX-listed covenant, as well as substantial upside in the form of future redevelopment potential,” he said.

“The property is nestled within the heart of the bustling and ever evolving Green Square, and is a high exposure site, benefitting from 29 metres of frontage to Elizabeth Street and excellent exposure from passing vehicular activity.”

-Ends-

For further information, please contact:

Vanessa De Groot – Marketing & Communications, Knight Frank

Vanessa.degroot@au.knightfrank.com +61 410 460211

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 16,000 people operating from 384 offices across 51 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the firm, please visit knightfrank.com.