Ex-American Express HQ sells again
The boutique Elizabeth Street building with a ground floor shop beneath four levels of offices, for years part occupied as American Express’ local headquarters, has sold for the second time in 18 months.
At auction yesterday, the former Thistle Tea Rooms, later occupied by Ackman’s Furniture then Sutton Music, at #105, was knocked down for $6 million.
Based on the income – only the retail component is leased, to Coleman’s Music – the result reflects a net passing yield of 4.72 per cent.
Assuming an occupier is found for the balance of the 870 square metre Victorian, which involves a renovation of the office component and optional elevator, the annual income could double to over $550,000 putting a fully let market return at 9.2pc.
The buyer comes from Singapore. The China based seller paid $7.55m.
Cushman & Wakefield’s Daniel Wolman, Anthony Kirwan and George Davies were the agents.
Next chapter for Thistle Tea Rooms
On 248 sqm zoned Commercial 2, between Collins and Little Collins, 105 Elizabeth St sits in the priciest part of the street to rent or buy.
The offices are entered via Equitable Place which also has the fire escape.
AMEX occupied the second, third and fourth floors.
It quit in the 1990s for Hothlyn House on Collins St, which was last for sale in late 2021 as part of an amalgamation with c$70m price hopes.
Nowadays the credit giant is headquartered at #333 in that street.
The deal comes a fortnight since we reported neighbouring shops on 198 sqm zoned Commercial 1, 423-425 Elizabeth St, leased to the world’s largest food and beverage chain, Mixue Group, trading as Wonton Lab, sold for $9.1m – a 3.66pc yield.
The same agents, with Leon Ma, brokered that deal.
That buyer was China based.
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