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Centennial hits the sweet spot with sale of Darlinghurst commercial asset
- Centennial sells three-storey freehold building at 256 Crown Street Darlinghurst for $20.36 million to private investor
- Site purchased in July 2018 for $13.8 million by Centennial’s 256 Crown Street Unit Trust
- Island site sits on 512 sqm with circa 390 sqm floor plates (6 tenancies)
- New buyer buoyed by City of Sydney’s increased building height from 15m to 23m and new adjacent ‘Oxford & Foley’ mixed-use development precinct
- Sale brokered by Knight Frank and Karbon Property
SYDNEY, NSW: Leading national property funds manager, Centennial, has sold a three-storey, freehold commercial building at 256 Crown Street, Darlinghurst to a private investor for $20.36 million.
The sale was brokered by Knight Frank and Karbon Property.
The sale yielded a 45.5 per cent profit for Centennial, which purchased the underperforming mixed-use site, from a private investor in July 2018 for $13.8 million.
Centennial’s Executive Director & CIO, Jonathan Wolf said the prime island site bordered by Crown and Foley Streets and Kells Lane was ripe for upgrading given Darlinghurst’s location two-kilometres from Sydney’s CBD and the suburb being directly on the City of Sydney’s development radar.
“After purchasing the site, we upgraded around 1,170 sqm of tenancy areas,” Mr Wolf said. “We also engaged a leading architectural firm to design a new concept for the site to improve the asset and show potential buyers how they could capitalise on rental returns such as increasing floor space, while also taking advantage of Darlinghurst’s emerging popularity for office assets.
“Being located adjacent to the new ‘Oxford & Foley’ retail, office and activated laneway precincts, our Crown Street site was also very appealing to buyers given it could piggy-back onto council’s re-zoning changes that included increasing building heights from 15 metres to 23 metres in the area,” Mr Wolf added.
“The successful sale of 256 Crown Street illustrates that Centennial’s formula of value-adding to niche-underperforming properties across a range of asset classes and underpinned by a team of highly experienced property and finance experts, will continue to augment the company’s growth well into the future.”
