Leasehold on 160-year-old Rawson Institute building in The Rocks up for grabs
The leasehold of a heritage-listed building at Sydney’s The Rocks has come to market with price expectations of more than $4 million.
The former Rawson Institute for Seamen building at 100 George Street has 1470 square metres of commercial space over four levels, on a 740-square-metre site.
There are 14 years remaining on the current leasehold agreement with Place Management NSW, which owns and manages Sydney’s harbour foreshore assets, including The Rocks and Darling Harbour.
An extensive renovation was completed in 2010. Photo: Supplied
The ground floor is leased to Appetito Restaurant for 22 years and generates a total rental income of nearly $615,000 a year.
The rest of the building, across the remaining three storeys, was formerly occupied by Bar 100 and is now vacant.
Savills Australia’s David Hickey, who is selling the property with Nick Tuxworth and Tom Tuxworth, said the decision to sell was based on the city’s strong commercial property market.
“Vacant Sydney CBD buildings are as rare as hens’ teeth in the commercial property market so the owners have decided to take full advantage of the current market conditions and divest,” Mr Hickey said.
He added that the property could be retained as a food-and-beverage facility or could be adapted for retail, offices or childcare.
“We feel the property provides a blank canvas for investors, alternative property syndicators and hotel operators to reposition and activate the former Bar 100 into a venue or working space that the public is screaming for in The Rocks,” Mr Hickey said.
“The building underwent $16 million worth of capital upgrades in 2010 and is fully fitted out for bar, restaurant and function centre purposes, with other options possible due to the substantial building area, including retail, office or childcare facilities.”
He noted that the site’s 23 metres of frontage across George Street and 26 metres of Circular Quay Way was a factor of its location that could “really capitalise on the passers-by”.
What the pair of Bridge Street heritage buildings could look like after a $300-million redevelopment. Image: Make Architects
“The northern end of the CBD is undergoing major infrastructure works, including residential, hotel, office and retail development, which will service strong trade and significant pedestrian foot traffic.”
It is one of a string of state government-owned commercial property leaseholds being divested in recent years to raise funds for public reinvestment, while keeping the property in government hands.
The 99-year lease of the former Housing Board Building at 16-18 Grosvenor Street, which is heritage-listed, sold for $7.5 million in December 2017.
And Singaporean developer Pontiac Land Group, led by Kwee Liong Keng, paid $35 million for a 99-year lease of the former Department of Lands and Department of Education buildings, at 23-33 and 35-39 Bridge Street.
The pair of buildings will undergo a redevelopment into a 240-room luxury hotel, with construction costing about $300 million. It is scheduled to open in 2020.
The Rawson Institute for Seamen was built between 1856 and 1859 by the Bethel Union, an association of Christian seamen. It was used mainly for church services but also had reading rooms and provided education and welfare services.
The building is down the road from the heritage-listed Campbell’s Stores, which are undergoing a $32 million transformation by developer Tallawoladah.
International expressions of interest for 100 George Street close on November 15.
