The well-known gathering spot for Double Bay residents, the Cosmopolitan Centre, is being sold as the owners take advantage of the regeneration of the suburb after it took a hit with the revamp of Westfield Bondi more than a decade ago.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Having been in the doldrums for some time, the area has had a rebirth, boosted by the opening of the new-look Woolworths centre, an array of new, luxe retailers, improved eateries and the updated and popular Golden Sheaf hotel.
The vendor is the private investment trust Gloxinia International Pty Ltd, and while no price was disclosed there are expectations it is worth about $45 million.
Home to the iconic Cosmo cafe, the Knox Street property has a 40-year history serving the well-heeled community including property owners, fashionistas and celebrity residents.
According to advisors on the sale, Steven Lerche, Andrew Palmer and Ben Azar of Savills, the Cosmopolitan Centre has been placed on the market at a time when demand for well-located retail property is high.
According to Tim Mitchell, director of research and consultancy at Savills Australia, Double Bay is "thriving" with 240 development approvals recorded by the ABS in the Double Bay-Bellevue Hill area, from the start of the financial year 2015 to December 2016, with 80 per cent of these for higher density dwellings, placing the area in the top quartile for the proportion of higher density development nationally.
"The retail precinct of the exclusive suburb has also received a proverbial facelift over the past two to three years, with a number of transformations occurring, ensuring the elite suburb remains at the top of investors' wish lists when looking to make their mark in the Sydney property market," Mr Mitchell said.
He said since 2013, Savills Research had recorded five neighbourhood centre sales in suburbs surrounding the CBD – with combined sales of $358.56 million.
The most notable include the Kings Cross Centre, Potts Point, sold for $23.81 million in 2013 and was sold again in 2015 for $37.3 million; the Oxford Square in Darlinghurst, sold for $62.7 million in 2013; Surry Hills Shopping Village ($96 million in 2015), and the Edgecliff Centre, ($138.75 million in 2016).
"However, NSW neighbourhood sales compared to total sales show that there have been $2.05 billion of NSW retail sales recorded in the 12 months to December 2016, and neighbourhood centres across the state accounted for $384 million, for assets valued at greater than $5 million," Mr Mitchell said.
Mr Lerche, national director retail investments at Savills, said retail property sales have been at record levels for the past three years and "we have increasingly faced a shortage of quality investment class assets, a market situation that we expect will aid our campaign".
"Retail has always been the darling of the property investor market and assets like the Cosmopolitan Centre are in a class of their own. The Centre has been part of the social fabric of Double Bay for over 40 years and it offers a unique opportunity to buy into one of Sydney's most exclusive suburbs," he said.
The site has a central mall with 25 specialty tenancies with a total lettable area of 2281 square metres. The property has an estimated net income of $2.4 million a year on a fully leased basis.
It was built in 1979 and traded as the Sir Stamford Hotel until 2007 when it was redeveloped and refurbished into residential apartments above and the retail at street level.
Mr Lerche said the owner had decided that with the successful sale of the apartments now complete, it was time to test the market with the retail component.
Nearby, JLL's hotels and hospitality group's Australasia chief executive Craig Collins has been appointed exclusive agent to sell the InterContinental Sydney Double Bay which is valued about $150 million.
