Sydney’s Bligh House office tower is back on the block with lofty redevelopment upside locked in for a 59-storey mixed-use scheme in the heart of the city’s core financial precinct.
It is the second time Singapore-based SC Capital has taken the 10,027sq m asset at 4-6 Bligh Street to the market. The price tag is circa $200 million.
Back in late-2019, Melbourne-based Salter Brothers was reportedly in the frame to buy into what was being spruiked as a planned $700-million mixed-use five-star hotel and office tower rising 226m.
However, the deal fell over in the early jittery days of the pandemic.
SC Capital teamed up with Sydney-based Fortius in 2015 to acquire the 17-storey Bligh House for $68 million from Cromwell Property Group.
The 1960s-built office asset has subsequently undergone a major $19-million refurbishment that was completed in early 2021. It included all office levels as well as a new entrance lobby, upgraded vertical transport and modern end-of-trip facilities.
The building is currently 82 per cent occupied with a list of largely technology-focused tenants taking up leases in the refurbished A-grade asset, including Shippit and Superhero.
Gateway determination was secured—allowing for the addition of 26,752sq m gross floor area—with Woods Bagot winning the architectural design competition for the planned 59-level tower.
Bligh House is being taken to market by McVay Real Estate’s Sam McVay and Rob Sewell and JLL’s James Barber, Simon Storry and Luke Billiau via an expressions of interest campaign.
McVay said Sydney's core precinct was going through a once in a generation transformation with the completion of an extraordinary level of private and government infrastructure projects.
He said, significantly, the Sydney Metro would provide two new station entries within 75m of the building in 2024 and 2030.
“Approximately 90,000sq m of existing commercial net lettable area has been earmarked for future redevelopment by major landowners in the precinct,” he said.
“Over the next five years the Sydney core will see a considerable amount of withdrawal and consolidation of stock for the development of prime offerings and as a result 4-6 Bligh Street will achieve above market rental growth from the leasing demand generated by these withdrawals.”
Simon Storry said 100 per cent freehold office buildings within the Sydney core were rarely listed, particularly “at this price point”.
“Coupling this with the potential repositioning and redevelopment plays available we expect will make it an extremely sought-after investment opportunity,”
