Neil Perry restaurant space in Sydney's CBD tipped to fetch more than $11 million
The Sydney CBD space tenanted by Neil Perry restaurant Jade Temple is expected to sell under the hammer for more than $11 million.
The strata retail property at lot 2, 7 Bridge Street, within the heritage-listed Burns Philp building, comprises 490 square metres of lettable area.
A local family bought it for $8.51 million in 2015 under the company I-Fund Pty Ltd.
If the property secures its asking price that would represent a 29 per cent hike in value in less than three years.
With a rental income of $600,000 a year, the space is tenanted by the Rockpool Dining Group until July 2023, with two five-year options.
Selling agent Andy Hu, from Knight Frank, said most of the buyer interest would come from local investors, with some offshore groups who possibly missed out the last time it sold.
The space is tenanted by Rockpool until 2023. Photo: © 2017 Mark Merton Photography
“Because this building or this restaurant has had quite a bit of history behind it, I think it will be received quite well in this local market, so probably local privates will be the main buyer groups,” he said.
“When the property was on the market last time, there was quite a big interest (coming from) offshore as well.”
He added that prime retail space in the harbour city is “very tightly held”.
“We only see around eight to 10 prime retail properties listed on the market each year, and very rarely of this calibre. This is an incredible opportunity for the right investor and as such, we expect a very high turnout at auction.”
Mr Hu’s co-agent on the listing Steven Tsang, from JLL, said the location was “one of the most iconic” for fine dining in Sydney.
“Investors who are looking for a prime retail investment to add to their portfolio would be hard pressed to find a more distinguished proposition,” said Mr Tsang, who is selling the property with James Aroney.
“The city’s current infrastructure upgrades surrounding the Burns Philp & Co. building is set to benefit from an unprecedented level of development in the Sydney CBD, including the new light rail, George Street pedestrianisation and the underground Sydney Metro rail.
“These developments will improve connectivity and increase patrons and diners in the immediate location due to the increased number of CBD-based workers.”
Built in 1899, the Burns Philp building is considered to be Romanesque, late-Victorian and Gothic in architectural style.
The property is scheduled for auction on March 15.
