75 Castlereagh Street For Sale First Time in 20 Years

A new round of asset sales worth more than $1.4 billion is soon to begin in the Sydney central business district, with the latest being 75 Castlereagh Street.

The 11-storey tower, Eastern Holdings’ sale will be managed by James Aroney and Ben Hunter of JLL, which was bought in 1994 for $16 million.

No price was disclosed but similar buildings have been valued at more than $50 million.

Other potential sales include the office towers owned by Scentre, the new Australian offshoot of Frank Lowy's Westfield.

Scentre is conducting a review of its office assets that may lead to property sales to reduce debt in the long term.

Scentre office towers are estimated to be worth more than $800 million.

The group has called for preliminary submissions to test the interest of overseas and local buyers.

The office and retail building opposite, at 75 Castlereagh Street, is home to Montblanc’s flagship retail store
The building 10 upper levels consists of office spaces occupied by a diverse range of tenants, while the ground floor consists of retail and a car park.

Mr Aroney, JLL's director of sales and investments for NSW, said the property would be highly sought after for its location and the fact it has recently been refurbished.

"Castlereagh Street is regarded as Australia's premium destination for international luxury retail," Mr Aroney said.

"Seventy-five Castlereagh Street is situated on a generous 1062 square-metre site and features longer-term development opportunities, including potential redevelopment into a substantial hotel or serviced apartment tower with a large retail podium."
Possible architectural concept designs have been prepared by Sydney architectural firm

Daryl Jackson Robin Dyke Architects.
Mr Aroney said there is significant growth for rentals in the Sydney CBD among new developments and building upgrades.

"Currently, the passing average rental is $475 per square metre per annum at 75 Castlereagh Street,” Mr Aroney said.

“This offers tremendous rental upside and future capital growth potential. The surrounding buildings are currently leased at rentals well in excess of this.

“For example, current rentals in the adjoining property at 77 Castlereagh Street are above $700 per square metre per annum.”

Gold Fields House at Circular Quay is another key property for sale.

Co-owners Blackstone, the private Valad Core Plus Fund and Dutch fund APG have appointed CBRE and JLL to market the almost 50-year-old building for about $400 million.

The agents expect the new owner of the property would look to convert it into apartments commanding harbour views.