27th September 2016: iProsperity Group, an Australian-based advisory firm, has partnered with the China-based Bridge Capital, to buy the 333 Kent Street office tower for the symbolic price of $88,888,888 from Maville Bay Pty Ltd.
The new owners will use the development approval to redevelop the property into a high-end hotel and residential building that will capitalise on the views across Darling Harbour. The distinctive heritage arch way facade will be retained in the redevelopment.
It is in the heart of Sydney’s busy Western Corridor and will benefit from the completion of Barangaroo and the International Convention Centre (ICC).
The agents involved in the deal were Vince Kernahan, Gus Moors, Guillaume Volz, Raymond Tran and Tom O’Neill, of Colliers International.
Mr Kernahan said the sales campaign attracted nine offers and exceeded the owner’s expectations on market interest.
“Interested parties were predominantly residential and hotel developers with two groups looking to “landbank” the building.
“What became evident throughout the campaign is that the rate per square metre of gross floor area (GFA) residential stabilised, hotel GFA rates increased substantially and commercial GFA albeit off a low base is on an upward trend, due in part to the market and councils’ proposed LEP [local environment plan] changes,” Mr Kernahan said.
Mr Moore said the deal comes as Sydney’s hotel sector is arguably the best performing in the Asia Pacific region, given the strong trading fundamentals and benign supply pipeline, combined with the opening of the ICC and development of Barangaroo driving further tourism into the city.
“[The property at] 333 Kent Street is ideally placed to capitalise on these factors,” Mr Moors said.