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Commercial buildings in Sydney CBD

Discussion in 'Commercial Property' started by Beano, 17th May, 2016.

  1. Beano

    Beano Well-Known Member

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    Has anyone brought any buildings in the CBD Sydney recently?
    Trying to work out the expected yield on 724-728 George St
    Its only a small building (557m2) and with a rent roll of $1.3m (Wale 5yrs) its quite within reach of most of us small investors
     
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  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Whats your definition of small investors?
     
  3. Iamnumber5

    Iamnumber5 Well-Known Member

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    If Beano is considered small, you and me are micro investors.
     
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  4. datto

    datto Well-Known Member

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    I've got an unusually shaped white building for sale at Bennelong Point if anyone is interested.
     
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  5. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    [​IMG]
     
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  6. Mumbai

    Mumbai Well-Known Member

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    Its not that bad. Lots of parking around
    [​IMG]
     
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  7. Player

    Player Well-Known Member

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    Dazz is here..... :D
     
  8. Beano

    Beano Well-Known Member

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    Small investors under $5m
    Medium investors under $10m
    Large investors over $10m
    Corporate ,syndicates , super funds, business listed property companies would be well over $50m
    Pa net rentals ex gst
     
    Last edited: 17th May, 2016
  9. Player

    Player Well-Known Member

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    @Beano the rent is 2300 bucks a metre. Is it retail only or are there also offices if its multi level?

    Edit..... by your definition it is more than large. Even at 10 million it's yielding 13% which aint happening in George street central Sydney IMO.
     
  10. Beano

    Beano Well-Known Member

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    Ground floor retail upper level office
    Hoping for the IM later this week
     
  11. chindonly

    chindonly Well-Known Member

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    Looked at one a little out of town recently in Regent St. Gross yield was 7.6%
    Imagine closer in would be a bit lower again.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    I'd say 5.5-6% tops, that'd bring it in around $20M+ (feels a little high though)
     
  13. Beano

    Beano Well-Known Member

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    Thanks
    I would imagine whole properties around $20m would be pretty popular as very affordable to many of us small investors
     
  14. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    Nah, I won't get out of bed for anything less than 50 mil.

    :rolleyes:
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    @Beano - $10-25m is of interest to syndicates and small or unlisted trusts. Mums & dads are generally capped out of these.
     
  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Didn't you just say small investor was up to $5m?
    Things like petrol stations, medical centres etc etc appeal to small investors.
    $20m CIP appeals to managed funds and ummm really rich people
     
  17. sanj

    sanj Well-Known Member

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    he said a property getting $5m in rent is accessible to small investors, which of course
    is ridiculous when you consider it will almost certainly be worth over $50m and potentially significantly so
     
  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Oh whoops did not read last line.
    Well then ..... I will say that I don't agree with @Beano
    $20m of CIP is no small investor.
     
  19. Player

    Player Well-Known Member

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    @Beano I'm staying nearby. Walked past this morning. It's Haymarket end of George street. Downstairs is HSBC and looks like offices above. It is a corner and has good width but not very deep. I imagine 5 to 6 % cap tops depending on the pockets and emotion of the prospective purchaser.

    I don't consider 20 to 25 million to be in the realm of a small albeit commercial investor. Certainly beyond my pockets. To be safe you would need a deposit or security title value of circa 8 million.
     
  20. Scott No Mates

    Scott No Mates Well-Known Member

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    Do I qualify as a small investor? I am 5' nothing ;)