Chatswood Central for sale: 1 – 5 Railway Street, Chatswood.
The recent announcement of the new draft masterplan encouraging greater development in Chatswood, coupled with the sustained strong rental growth and increasing offshore purchaser interest in the precinct, has encouraged Hume Property Pty Ltd, formerly known as Bennelong Group, to take advantage of the prevailing market and offer its dual tower property, in the heart of Chatswood, for sale.
Chatswood Central, at 1 – 5 Railway Street, adjoins the entry to the Chatswood Bus and Rail Interchange, from the corner of Victoria Road and Railway Street. This prime position is just a short walk from Westfield Chatswood and Chatswood Chase shopping centres.
Jon Chomley and Steam Leung of Colliers International and Bevan Kenny and Chris Veitch of CI Australia have been appointed as the exclusive selling agents.
The amenities offered in the Chatswood CBD have proven to be a strong drawcard for tenants of all sizes resulting in the property enjoying consistently high occupancy rates and a strong cash flow. It also adjoins the site, which under the proposed masterplan, is highlighted for the development of a new pedestrian plaza, which will encompass the corner of Railway St and Victoria Ave.
The two, 12 storey towers are joined by the retail plaza, which provides a range of cafes and restaurants, a gymnasium and a childcare. Overall the buildings contain over 18,000sqm of office and retail accommodation, with 100 basement carparks, and a strong mix of income from different sources
According to Jon Chomley, National Director, Capital Markets at Colliers International, Hume has owned the property for over 10 years and has spent considerable capital on upgrading the plaza area, the lifts and the air-conditioning throughout the property, which offers quality office space to its many tenants.
“Chatswood has been the beneficiary of strong rental growth over the last three years and this looks set to continue with the removal of suburban office space from the market for residential development. This in turn has reduced supply, particularly in B grade office space, and has bolstered rental growth” he said.
Hume recognises that the next wave of growth for Chatswood Central will be through development, however as it is primarily an investment group and not a developer it has decided to market the property.
The overall site is a massive 3,806sqm providing future development opportunities as it is underdeveloped under the current Masterplan for Chatswood. Bevan Kenny of CI Australia observed.
“There is substantial development upside for this site linking the retail to the east with the commercial heart of Chatswood to the west of the railway line. The site is significantly underdeveloped and there is major potential under the current Chatswood zoning allowances.”
“Whilst it will take time for any proposed redevelopment, the building enjoys virtually full occupancy with strong effective rental growth and the improving property fundamentals of the Chatswood market.”
The site is currently leasehold from the Rail Corp however Hume has been in dialogue with RailCorp and there is a known pathway to either extend the ground lease term or freehold the property.
The property is being offered to the market by way of expression of interest closing at 4pm Thursday 30th March 2017.