Car park station collects $40.5m
Andrew Richardson has sold a nine level Sydney CBD car park station on his second attempt.
The developer behind Sheraton on the Park and owner of a city office, 2 Bulletin Place, is banking $40.5 million for 109 Pitt Street.
He paid $38m in 2020, it was speculated, to develop.
With 114 bays leased to Secure Parking until 2027, it was offered for sale three years ago and, with a different agency, 14 months ago.
The property neighbours the proposed Halo office, which Milligan has been proposing since before COVID.
Earlier this week, Melbourne based Cbus bought into that venture.
The car park is also near Justin Hemmes’ Merivale’s Ivy precinct and the Hunter Street Metro.
109 Pitt Street
Mr Richardson had agreements to potentially sell the site to developers proposing redeveloping airspace over the Hunter Street Metro.
One – with Brookfield in 2022 – was speculated to be worth c$70m.
It was planning a two tower office complex.
Milligan was also eyeing it – for $80m in 2020 – but never got to exercise and option.
Owning it would allow Halo’s lettable area to potentially double to c95,000 sqm.
Savills Harry George, Tim Grosmann and Andy Hu listed the asset last April.
Their deal reflects a 4.86 per cent passing yield.
“The campaign attracted strong interest from across all capital classes, particularly from high net worth individuals and family offices,” they said.
“These groups were drawn to the asset’s simplicity and secure income, underpinned by a lease to Secure Parking, Australia’s largest car park operator,” according to the agents.
Also this month, we reported Dexus selling 1017 car parks in the Melbourne CBD, part of the Flinders Gate office complex.
More to come.
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