Local investment group Kingsmede have sold their Sydney CBD asset in Pitt Street to a group associated with the Bank of Beirut. The bank, via its local offshoot Bank of Sydney has paid $50M for the B Grade asset which sits in a prime core position opposite Australia Square.
The building consists of seven floors of office space, including 221sqm floor plates, two ground floor retail premises and new end-of-trip facilities, making a total of 1709sqm of net leaseable area on a 284sqm site.
The property was thought to have been in the target for Dexus and Brookfield who hope to consolidate the buildings in the block bounded by Spring, Pitt, Gresham and Bridge Streets. The block has been identified as a tower cluster area under the Central Sydney Planning Strategy with a potential developable height up to 300m, well above the existing structure at 230m. With the sale to Bank of Beirut, the property heavyweights Dexus and Brookfield are likely to pursue a separate project elsewhere on the block.
62 Pitt Street is the second asset sold in the last 6 months by Kingsmede, who also sold 110 Eagle Street in Brisbane in October to Capital Property Funds for $35.35M, reflecting a yield of 6.7%.
Kingsmede continue to hold a range of other major CBD sites including 25 Bligh Street Sydney and 50 Berry Street North Sydney, both within a stones throw of the new Sydney Metro stations due for completion in 2024.