EN | KOR
Crows Nest Icon Sells For $27 Million
5 May, 2010, Australia
The Barana Group has purchased the "Spectrum" Office / Hotel Complex, located at 200-220 Pacific Highway, Crows Nest, for $27 million, from the New Zealand retirement living specialist, Sanctuary Residences Limited. The property was sold through agents Robert Farrell and Paul Hunter from Cushman & Wakefield and Richard Garland from DTZ.
The property comprises of two commercial buildings, a 7 level office building and a 15 level mixed use building which provides retail, office and hotel accommodation, plus basement parking for 190 vehicles. Both buildings were completed in 1974 and provide a gross lettable area of approximately 13,500 square metres. The current net annual income being derived from multiple tenants occupying a variety of space in both buildings is around $1.647 million.
The key driver for the Barana Group in acquiring the property was the current secure cash flow generated by the hotel, with the ability to improve the revenue by converting the existing improvements to residential apartments, thereby making the property all the more appealing. The property benefits from having an existing Development Consent from North Sydney Council, which allows for conversion to 116 residential apartments.
Robert Farrell from Cushman & Wakefield commented:"The property has had very little spent on it in the last few years, yet has been achieving high office and hotel rents. This is testament to the property's sought after location and the stable income mix.
Richard Garland from DTZ continued: "We anticipated there would be a high level of demand for this development opportunity, which provides outstanding district and Sydney Harbour views. This proved to be the case with at least a dozen offers submitted when the Tender closed from a variety of buyer types, including; institutions, wholesale funds, private overseas equity groups and Australian based builders and developers"