Investa has bought the former Telstra Telephone Exchange site in North Sydney for $23.85 million.
The 2,467 sqm site is located at 16-40 Mount Street in the North Sydney CBD.
The property is being acquired for Investa Commercial Developments, which is looking to redevelop the site into a 25,000 sqm office building.
The previous owner of the site had submitted plans to construct a 438 room hotel and serviced apartment complex.
Investa’s group executive of commercial development Richard Johnston said the acquisition provides the group with access to the improving North Sydney office market.
“The project could be delivered in three to four years.
“In addition to generating revenue for our Commercial Developments division, on completion the asset can be made available to Investa’s portfolio and/or unlisted funds businesses.
“The Mount Street property provides further leverage in North Sydney with Investa managed buildings at 146 Arthur Street, 80 Pacific Highway and 73 Miller Street. It is also complementary to our office development sites at 33 Bligh Street, Sydney and Macquarie Corporate Park,” he added.
The transaction was negotiated by Jones Lang LaSalle Hotels, in conjunction with Jones Lang LaSalle’s Capital Markets division.
JLL Hotels’ senior vice president of investment sales Mark Durran said the campaign attracted interest from over 70 parties ranging from hotel and serviced apartment developers, investors and operators as well as major commercial developers.
“This was a truly unique development site in every sense of the word,” JLL’s director of commercial sales Su Cordiner said.
“The opportunity to develop a major office building in North Sydney without having to amalgamate substantial existing buildings is virtually non-existent.
“This scarcity value was recognised by major commercial developers who understood the market dynamics of North Sydney’s CBD,” she added.
By Adam Parsons
