Land-rich Sydney trophy asset expected to fetch more than $100 million

For the first time in more than 50 years, a rare opportunity to acquire a substantial property holding in premium inner-city Sydney is being brought to market through JLL & The Agency.

Marlborough House at 47-97 Marlborough Street, Surry Hills, is expected to sell for more than $100 million.

JLL Senior Director, Capital Markets – NSW James Aroney said: “In Surry Hills, a market where investment and development opportunities are scarce, this unique opportunity is expected to generate considerable interest from both local and international buyers, given its rarity and prime location within Sydney’s inner fringe.”

The landholding of 3413 sqm is significant and benefits from a highly favourable MU1 mixed-use zoning, with the potential to add up to approximately 5730 sqm of GFA, subject to council approval. 

“The site is uniquely placed to retain most of the existing improvements whilst providing the opportunity to redevelop a significant portion for various clearly definable development options, including residential and mixed-use possibilities, subject to council approval (STCA),” Mr Aroney added.

The Agency Director, Commercial Division, Michael Laing, commented: “The existing buildings are 97 per cent leased to high-quality tenants on effective rents, offering buyers a secure and sustainable cash flow with strong rental growth prospects. 

“Some of Sydney’s most acclaimed architects and designers have based their operations at Marlborough House for many years and the asset has always maintained a historically high occupancy level.

“The character-filled buildings offer an ideal floor-plate layout and high-clearance ceilings of 4.2 metres, with an abundance of natural light and panoramic views from four glazed frontages,” Mr Laing said.

The landmark buildings were constructed in two stages between 1914 and 1934 and are close to transport, infrastructure and lifestyle amenities, including the Surry Hills light rail station and the fashionable Crown Street dining and fashion precinct. 

Four residential future development options for the site have been identified by renowned architect Andrew Andersons, subject to council approval. 

In Option One, both buildings would be maintained as an office and showroom space, while a new two-storey apartment building would be developed over the car park.* Approximate, STCA.

Option Two maintains the existing 1914 building and converts the three above-ground levels of the 1934 reinforced concrete building into apartments.* Approximate, STCA.

Option Three would subdivide the car park from the main portion of the site, generating 3010sqm of GFA.*Approximate, STCA.

Option Four would see the timber-framed 1914 building maintained as office and showroom space, the 1934 reinforced concrete building extended by four levels to create 4760sqm of GFA* Approximate, STCA, and the subdivision of the car park to create an additional 3010sqm of GFA* Approximate, STCA. This would bring a total of 7700sqm of GFA* Approximate, STCA.

The property is offered for sale by Expression of Interest closing Wednesday, 12 June, at 3pm (AEST)