A fresh round of asset sales worth more than $370 million have been earmarked in the lead-up to the end of the financial year.
Residential conversions and redevelopments are also being pursued to chase the cash in the market that is seeking out higher yielding investments.
The latest sale is at 182 Elizabeth Street, Sydney which is currently leased to the Vibe Hotel, but has the potential for a residential conversion with more than 200 apartments.
It is expected to interest a wide range of local and overseas developers and marks the next wave of residential conversions in Sydney's CBD.
No sale price was disclosed, but similar properties, such as 130 Elizabeth Street, was sold recently for $121 million to developer Ecove/China Aoyuan, while Hong Kong-listed Shimao Property Holdings and its chairman Hui Wing Mau bought 175 Liverpool Street for about $390 million.
The property at 182 Elizabeth Street has more than 17,000 square metres of gross floor area including the ability to deliver about 1685 sq m of retail space and is being sold by John Bowie Wilson and Tim Holtsbaum of Knight Frank and James Aroney and Mark Durran of JLL, on behalf of vendor Toga Far East Hotels (TFEH).
182 Elizabeth Street
Knight Frank's senior director, city sales & capital markets, John Bowie Wilson, said he expects strong demand from domestic and offshore developers and investors looking for a unique land bank offering with holding income in the CBD.
Mark Durran, managing director of JLL's Hotel Investment Group, said the Vibe Hotel generates substantial cash flow and is available with ongoing management or flexible leaseback arrangements.
JLL's director, sales and investments, NSW, James Aroney, believes the property's appeal to residential developers will be greatly enhanced "not only for its key physical and locational attributes but due to the flexibility it offers in terms of the availability of vacant possession, which is exceptionally rare in the Sydney CBD".
St Hilliers have also appointed Knight Frank and Chesterton International to sell 151 Clarence Street, with price expectations of about $130 million.
On the north shore, Charter Hall Direct Office Fund (DOF), has received NSW Department of Planning (DoP) approval for the rezoning at 500-520 Pacific Highway, St Leonards.
It is expected the fund will look to divest the proposed mixed-use residential project to a developer, with agents expecting a price of about $130 million.
Nearby, the College of Law has recently taken a decision to investigate sale of the property at 2 Chandos Street, St Leonards with a view to moving to a new, more modern and more suitable main campus facility.
The college has set a time frame of two to three years to identify a new location and to undertake the move. Jon Chomley and Henry Burke of Colliers International have been selected by the college to market the 2 Chandos Street. The property will be offered with a leaseback for two years with two options of six months each to the College of Law.
