A Sydney syndicate has sold a third of a Lutwyche commercial asset for half the price it paid.
Ladbrokes’ former headquarters at 467-473 Lutwyche Road is trading for $11.25 million to a nearby aged care community and disability service organisation which plans to occupy.
JLL’s Sam Byrne and Tim Jones brokered the off-market deal.
The double storey investment contains 1776 sqm of lettable office area and 60 basement car parks.
The vendor spent $22.5m in 2015 on it and the adjoining two level building: 461-465 Lutwyche Rd, leased to Fitness First as a gym with a pool, and Telstra.
JLL is also marketing that site (pictured, outlined, bottom right) for sale – asking $16m.
Asset value has doubled since 2008 despite vacancy
Combined, the syndicate’s outlay five years ago comprised 4962 sqm of workspace and 149 car parks.
On 4444 sqm of land, at the south-east corner of East Street, the parcel was marketed for its substantial development upside (story continues below).
That vendor, Harvest Property, paid $13.9m for 461-473 Lutwyche Rd in 2008.
No re-pricing necessary: agents
“Whilst this [Ladbrokes office] sale was agreed in late 2019, the transaction reflects the current sentiment of many owner occupiers and investors who are active in the market – that quality assets with strong underlying fundamentals are in demand with no re-pricing during this period,” the agents said.
The price for 467-473 Lutwyche Rd reflects a building rate per sqm of $6334.
Lutwyche is about five kilometres north of Brisbane’s CBD.
Ladbrokes – an arm of London Stock Exchange listed GVC Holdings – is now headquartered in Australia at Bowen Hills, also in the inner north.
Years ago its Lutwyche Rd office was occupied by recruiter Manpower.