Vietnam backed Arthur Winston Investments has paid over $25 million for neighbouring Haymarket properties – one which is permit-ready for a 10 level hostel.
The amalgamated holding covering 806-808 and 810-812A George Street (latter, pictured, top) spreads 560 sqm.
Near Central station, and Atlassian’s new headquarters, it can be replaced with a c17 storey structure.
“Hotel development opportunities across Sydney and the regions are attracting strong interest from experienced and new capital sources,” HTL Property’s Nic Simarro said.
“In the past three months, we have been able to close deals on three sites to…Asia based investors, some of which had not physically been able to visit the property they were purchasing,” he added.
One occurred earlier this week, with Vietnam based syndicate AALM Holdings paying a speculated $6.9m for Blue Mountains retreat Eagle View Estate.
The largest of the two Haymarket assets, Seagrave House, at 810-812A George Street – for decades home to the Foundation of Aboriginal Affairs – covers a 279 sqm parcel (story continues below).
It was picked up by Bounce Hostel owners Fuqiang Investments, after the state government compulsorily acquired its former Surrey Hills backpacker venue, 20-28 Chalmers St, to create a new Central station entrance.
Fuqiang unsuccessfully tried to replace Seagrave House with a 16 storey asset able to sleep 311 guests.
In the end, it won permission for a 10 level hostel.
“Having been initially appointed on 810-812A George St, HTL Property…were able to secure the purchaser for this site before amalgamating 806-808 George St as part of a broader deal,” Mr Simarro said.
“810-812A George St enjoys a development approval for a ten storey mid-scale hotel or hostel, however the adjacent land acquisition will now open a range of further opportunities to the purchaser,” he added.
“The dual frontage properties…offer a 7.5:1 Floor Space Ratio and a fifty metre height limit,” according to the agent.
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