Private equity firm NashCap and its partner, the Lowy-backed real estate fund manager Assembly, have jointly struck a $36.2-million deal to buy a row of historic terraces and a neighbouring commercial building in central Sydney.
The partners have acquired the 99-year leasehold of Longs Lane terraces, an ensemble of 17 residential homes across a 2500sq m site in The Rocks.
The majority of the properties, built between the late 19th and early 20th centuries, are state heritage-listed.
The terraces, all held on a single title, were sold by the NSW government as part of its controversial move to offload former public housing property in inner Sydney.
In 2019, the state government sold the former public housing building Sirius for $150-million to Sirius Developments Pty Ltd, a development group backed by local investment firm JDH Capital.
The terraces were sold on a 30-day settlement and include a commercial bed and breakfast establishment on Cumberland and Gloucester streets.
The long-term leasehold for the properties was sold by Stuart Cox, Neil Cooke, Johnathon Broome, Andy Hu and Jordan Lee of Savills on behalf of the state government.
NSW minister for housing Melinda Pavey said the transaction of the terraces, all held on a single title, ensured the assets would be owned and managed in a way that delivered the best outcomes.
“The sale of the Longs Lane terraces allows private sector investment and innovation to play a key role in conserving and bringing these prized properties to life, while also keeping them in government hands in the long term,” Pavey said.
“It also means tens of millions of dollars will be unlocked and reinvested into much-needed infrastructure projects and services that will help communities across this state get back on their feet again following this latest Covid-19 crisis.”
Pavey said the sale outcome, following a competitive tender process, reflected the private sector’s confidence in the future of The Rocks.
For Assembly, headed by former Westfield chief operating officer Michael Gutman, the transaction continues its rapid growth since forming in 2019.
The firm, backed by Lowy Family Group and Alceon Group, has so far secured more than $200 million of acquisitions, primarily in residential, large format retail, and childcare properties.
In September, the fund manager snapped up two warehouses in Melbourne’s south-east for $25 million, joining a host of institutional investors push into the industrial sector.
As with Longs Lane, Assembly partnered with industrial property specialist Cadence Property Group, led by Charlie Buxton, on its dual industrial purchase in Dandenong South.