James Packer, Time & Place buy historic warehouse to repurpose
A historic Surry Hills warehouse once occupied by David Jones has sold to James Packer and Time & Place, which are planning a residential repurpose.
The site, 47-97 Marlborough Street, comprising an eight storey building and adjacent tract – all up 3413 sqm – cost $110 million.
The redevelopment, with 176 dwellings – a high 15 per cent (26) allocated for affordable housing – carries a c$500m end value.
Elsewhere in Sydney, Mr Packer and Time & Place are behind high end apartment projects in Manly and Potts Point.
Still a low yield for an investment grade office
Developed in two stages, in 1914 and 1934, the Art Deco warehouse converted Marlborough St office contain 8719 sqm of renovated, 5.5-star NABERS rated, space – 97pc of which is occupied.
There are also 49 car parks (story continues below).
Based on the potential fully let net income, Mr Packer, via a company, NPACT, and Time & Place, led by Tim Price, are paying a price reflecting a 3.1pc yield.
Up to 5730 sqm of additional lettable area would be possible, marketing agents, JLL’s James Aroney and The Agency’s Michael Lang, said, when the asset was listed in May with a c$100m guide.
The vendor was a private investor which held over five decades.
The acquisition is the latest development play for Mr Packer who has teamed with other companies for low and medium density residential projects in Victoria – in Balwyn, east of Melbourne, and Geelong.
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