SLMC Property Australia, the Singapore-based Sim Lian Metro Capital subsidiary, has acquired a 27-storey office tower in Sydney’s central business district at 1 Castlereagh Street for $196.4m. The deal marks a 10 percent decline from the $220 million the previous owner, Hong Kong’s Early Light International, paid five years ago.
The property, measuring 1,164 square meters, now stands right at the intersection of Castlereagh and Hunter Streets. The strategic location comes with an enviable position on the opposite side of the newly completed Martin Place Metro station. After spending over $37 million on extensive renovations, the building now provides 12,418 square meters of prime office space spread over 23 levels and retail space on the ground and lower floors.
Recent renovations include a major renovation in 2020-21 worth $24 million that created two penthouse office floors and moved plant equipment. Other upgrades will come to the tune of $13 million on the plan to replace the lobby, new tenant amenities, facade restoration, and some retail and basement reconfigurations.
Despite these capital improvements, the property is being sold at a loss, according to Early Light International – a company controlled by billionaire toy entrepreneur Francis Choi. The sale is linked to Choi’s earlier purchase of the former headquarters of the Australian Securities Exchange at 20 Bridge Street, which is also up for sale.
The office tower is currently around 85 percent leased and counts notable tenants including award-winning Dental Boutique, Citrus Group, the Recruitment Company, Verkada Australia, Wrays, and Red Bottle.
Agents Dominic Ong, Paul Roberts, Ben Schubert, and Jonathan Vaughan of Knight Frank led the off-market campaign in facilitating the transaction. According to Ong, the property is in the heart of Sydney’s financial core, which he noted is close to iconic structures and has better transport links. He also reported a significant increase in interest from offshore investors this year in Sydney’s office market with most interest coming from Singapore.
