Thai Airways office tower in Sydney CBD sells for $44 million

Wiltshire International has bought the Thai Airways building at 75 Pitt Street in the Sydney Central Business District for $43.52 million, which exceeded the expectation of a mid-$20 million price guide.

The price indicates the value of office space in the Sydney CBD to investors, given the low vacancy resulting from the withdrawal of space to allow redevelopment such as mandatory acquisitions of buildings for infrastructure development.

The building has been owned by Thai Airways for more than 40 years. It is sandwiched between some of the busiest bars in the CBD and has a mixed-use option to be redeveloped into a hotel, with additional floors. But it is understood that Wiltshire will not be converting the building into a hotel and will likely refurbish the property to be leased as office space to capitalize on strong demand. The 13-floor building, with a floor area summing up to 2,400 square metres, sits on a small 234 square metre site.

In the last quarter of 2017, Sydney CBD office vacancies fell to a near 10-year low and prime rents shot up more than 20 per cent over the past year. The office vacancy rate has fallen 4.6 per cent and could reach as low as 3.4 per cent.

Image source: Josh Hill Photography

Article source: http://www.afr.com/real-estate/thai-airways-office-tower-in-sydney-cbd-sells-for-44-million-20180315-h0xim9


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