Ultimo warehouse sold, set for repurpose
Apt.Residential, a build-to-rent outfit backed in May by Dutch pension fund PGGM, has snapped up a prominent Ultimo building.
The $55 million deal will see the warehouse converted office at 1-3 Smail Street, repurposed again.
Developed in the early 1900s, containing 7796 square metres, the seller is Mirvac.
Coincidentally it also paid $55m, in 2015.
Some 2555 sqm is vacant.
Apt.Residential has until February, 2026, to exercise the redevelopment clause.
Target: 2500 dwellings
PGGM backed apt.Residential with an initial $1.5 billion; the company is intending to hold over 2500 Australian apartments.
Elsewhere in Sydney, the BTR venture is behind a proposal at Meadowbank, with 291 dwellings in four buildings, above retail (story continues below).
“The Smail St site is close to Broadway Shopping Centre and within walking distance of Central station, the city and two major universities,” apt.Residential managing director, Matt Carolan, said.
“We think it is a prime location for high quality rental apartments and studios,” he added.
“The company will now commence work on a development plan for the building that would honour the building’s heritage while maximising livability for future residents,” according to the executive.
For decades after 1949, the asset was held by Grace Brothers/Myer for warehousing.
“The building’s heritage value to Ultimo and Sydney is important…by maintaining and resorting certain design elements, the site’s history will be celebrated in our development application,” he said.
PGGM is in another Australian BTR venture, with US-based Sentinel Real Estate.
Announced it 2022, that entity is also expected to hold some $1.5b of product.
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