Hong Kong based Terraform Capital has listed The Rocks’ historic Accountants House after three and a half years.
The six level office at 117 Harrington Street, held via an 82 year ground lease to the Sydney Harbour Foreshore Authority, could fetch over $24 million, sources say, which would reflect a five per cent yield.
It paid $21.05m – a 5.25pc return – a in mid-2019.
That seller, Sumner Capital, which held it for Swiss investors, outlaid $13m a decade ago.
Though it was speculated Terraform might have repurposed the space into a hospitality venue, it retained it as an office investment.
Accountants House comprises two buildings – 112 Gloucester St, developed in 1912, and 117 Harrington St, completed two years later.
It earned its name in 1952, when it was held by the Australian Society of Accountants, which held it until 1971.
The Sydney Harbour Foreshore Authority seized control in 2004.
“The property, which comes with three street frontages, has a net lettable area of 1417 square metres,” Colliers’ Joseph Lin, who is marketing the asset with Vince Kernaghan and Callum Cooke with Knight Frank’s Jonathan Vaughan and Andrew Hartford, said (story continues below).
“[It] is the only Sydney office under 1500 sqm that possesses a NABERs energy rating of five stars or above,” he added.
Average floorplates are 278 sqm.
The Weighted Average Lease Expiry by income is 2.89 years; occupiers include Adara Advisors, Artazan Property Group and Pharmacy Phusion.
“Surrounded by some of Sydney’s newest developments including the Salesforce Tower and Quay Quarter tower, the property is poised to benefit from the continued evolution of the precinct” Mr Cooke said.
It is also near the EY Centre – which M&G Capital and Mirvac snapped up a half stake in from the AMP Capital Wholesale Fund two years ago, for $578.5m – and the Harry Seidler designed Grosvenor Place, a 50pc interest of which also traded in 2021, from the Canada Plan and Investment Board and Dexus to Blackstone (for $925m).
“Accessibility in The Rocks is key to its appeal with both Circular Quay and Wynyard train stations just a short walk away,” Mr Hartford said of Accountants House.
“Infrastructure continues to be built in the region, with retail, food and beverage amenity all improving,” he added.
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