$100m Hermes flagship sale shrouded in secrecy
A stake in the heritage Trust Building in Sydney’s CBD, soon to be the new flagship store of luxury fashion brand Hermes, has quietly changed hands for about $100 million.
Financier Qualitas has effectively sold four floors – understood to have been recently converted into just two – of the landmark strata property at 155-159 King Street to a private Sydney investor from the eastern suburbs.
The 12-storey building, on the corner of King and Castlereagh Streets, was one of the first generation of skyscrapers built in Sydney and was the site of the former Daily Telegraph offices between 1916 and 1929.
In 1936, following a renovation, the building was bought by the Bank of New South Wales, now known as Westpac.
The building has received a significant refurbishment, understood to have been financed by Qualitas to the value of about $30 million.
Hermes’ plans for a new store have been shrouded in secrecy, however a caveat lodged on the title in January 2018 by the global fashion retailer reveals an agreement is in place for the lease of the property.
Construction on site is currently under way with Hermes believed to be undertaking a fitout across the two floors.
The stake in the Trust building was originally bought by commercial property investor and high-end retailer Gennaro Autore in 2015 but it is understood his company Graaf Pty Ltd ran into problems and, according to ASIC documents, an external receiver was appointed in 2016.
It is understood Qualitas later came on board to fund the building refurbishment, however a spokesperson declined to comment on the deal.
“Qualitas provided a total capitalisation solution and development management services to assist the owner with the significant overhaul and refurbishment of the building, in order to accommodate the repositioning of the heritage space into a flagship store for a global retail fashion house,” their website said.
It is understood the sale was brokered by Eugene Evgenikov of the recently relaunched Stanton Hillier Parker brand. He was unable to be contacted for comment.
The luxury fashion zone at the cross streets of King and Castlereagh is set to undergo a major transformation not just with the arrival of Hermes but also with a $170 million project that will rejuvenate the streetfront retail as well as theatre and dining components at the MLC Centre, diagonally opposite, by landlord Dexus.
High-end fashion labels Chanel and Dior have stores on the other two street corners. The Bulgari flagship store at 64-68 Castlereagh Street, the building next door to Chanel, sold at the end of 2018 for more than $50 million.
