Fringe Office Asset Tipped to Top $50m

The SJB Architects-designed Oculus project has hit the market with expectations of more than $50 million. 

Freehold Capital—who developed the project at 249-255 Crown Street in Darlinghurst, which was approved in February, 2019—is the vendor.

The property sits on a 664sq m site and has 2150sq m of commercial space. Oculus has four levels of retail and office space, a rooftop terrace, onsite parking and end-of-trip facilities. 

It has a WALE of 6.52 years and brings in $2.5 million annually in rental income.

The Colliers’ Matthew Meynell, Miron Solomons and Matt Pontey will manage the sale via an expressions of interest campaign.

Solomons said the property stood out in the market.

“There are not many new freehold commercial properties in the Sydney city-fringe market,” Solomons said.

The Darlinghurst area, in particular the Oxford Street strip, has been a hot bed of investor interest in recent years.

Ashe Morgan announced a Darlinghurst Collection development in 2019 and Toga followed suit with the Oxford and Foley project that includes a mix of a boutique hotel along with retail and commercial space.

▲ The Oculus building in Darlinghurst.

The National Art School and the UNSW Art and Design campus, which has a new 45-year lease, are also in the area, making it an attractive prospect for investors. 

Solomons said that the Oculus sale would draw interest from overseas investors as well. 

“We expect it to be well-received by private investors, funds, institutions and offshore investors too,” Solomons said.

Oculus’ location in the city fringe was also key, he said.

“Currently the Sydney city-fringe commercial market is coming off the back of its strongest year on record, outpacing all other major geographic locations,” Solomons said.

“With businesses shifting towards a more cost-effective solution allowing greater employee benefits and the stabilisation of incentives, investors are provided with strong tenanted covenants on a long leasing term.”

The expressions of interest campaign closes on Wednesday, June 8, at 2pm.