The City Exchange site is for sale on the international market
Newcastle, NSW, June 2023 –Rare opportunity for multi-sector development in the Newcastle CBD.
Partner and Capital Markets expert, Matt Kearney & Adam Leacy of Commercial Collective together with JLL’s James Aroney, Mitch Noonan and Kate Low have been exclusively appointed to sell The City Exchange site comprising of 426 King Street, Newcastle and 591-615 Hunter Street Newcastle via an international Expressions of Interest campaign.
“The consolidation of the five individual sites by the current owner presents a rare offering of scale. In fact, this site marks only the third time in the past decade that a CBD site larger than 6,000 sqm with redevelopment potential has become available on the market.” Said Mr Kearney.
This asset not only presents value as an investment opportunity with its strong existing income but also offers future development potential due to its current underdevelopment relative to the planning controls in place.
Mr Noonan said, “The City Exchange site represents a prime investment opportunity in Newcastle's thriving CBD. With its strategic location, versatile zoning, and significant development potential, this site opens doors to various possibilities in the market."
The site has versatile B4 zoning and a strategic position within the local market, presenting it as a compelling opportunity for major multi-sector mixed-use development. Given the surrounding uses, current planning controls, and market demand, the City Exchange site has the capacity to accommodate possibilities that include office spaces, build-to-rent (BTR) properties, medical facilities, hotels, residential units, and associated retail establishments.
Mr Leacy said, “This exceptional offering provides not only a major future development opportunity but also the chance to enhance the value of the existing assets, while benefiting from the strong underlying land value.”
The site currently generates secure holding income through the five individual buildings, including the iconic former Hunter Water building. These existing assets underwent significant refurbishment in 2010 and now provide a stable revenue stream from a diverse tenant mix, with a weighted average lease expiry (WALE) of 1.73 years by income.
Mr Kearney said, "Newcastle's growth trajectory, driven by a growing white-collar workforce and investment in education and medical facilities, makes this offering even more compelling. The 'City Exchange' site is poised to become a vibrant precinct and contribute to the city's continued development."
The Newcastle Urban Renewal Strategy 2012 (NURS) identifies the West End of Newcastle as the future CBD which is in close proximity to the City Exchange site.
International Expressions of Interest for The City Exchange site close on 20 July 2023 at 3pm (AEST).
Commercial Collective’s Capital Transactions team are highly experienced in matching developers and investors to property opportunities which have a positive impact to the local community.
View more about the property here.