An inner Sydney property currently leased to the iconic Space Q capsule hotel has been listed for sale.
Also known as “pod hotels” capsule hotels were developed in Japan to provide basic, cheap overnight according for guests who couldn’t afford the larger accommodation afforded by conventional hotels.
Most infamously, capsule hotels are stereotypically used by Japanese salarymen who miss the last train in the evening and are too drunk to return home safely.
Since then capsule hotels have evolved to cater for male and female guests (sometimes separated by various floors) and are common across Europe, India, Iceland, India, Indonesia, Canada, Singapore and here in Australia.
The building at 752 George Street in Haymarket is fully leased, consisting of a high-profile ground floor and mezzanine level retail space leased to Hisshou Teppanyaki, with the four upper levels of accommodation leased by Space Q.
In total, the building has 966 square metres of gross lettable area, including 180 sqm on the ground floor over levels one to four. It sits on a 231 sqm site.
The property is owned by Roje Brothers Pty Ltd, who have held it since 1992, says local director and solicitor Raymond Lee.
Knight Frank’s Linda Zhu and Dominic Ong are taken the asset to market via an expression of interest campaign in conjunction with Andy Hu and Jordan Lee of Savills.
Ms Zhu said the freehold asset is expected to attract a range of investors due to its tightly held George Street location, along with prominent street frontage and a range of value-add opportunities.
“The property is fully leased, providing a strong holding income but it also has favourable planning controls with a 50-metre height limit,” she said.
“Occupying a prominent George Street position, the property is situated in the growth corridor of the New South Wales Government’s multi-billion-dollar Tech Central precinct next to Sydney’s Central Station.”
Linda Zhu, Knight Frank
Mr Hu added “We are seeing a lot of active offshore capital actively chasing for opportunities within that precinct.”
“Premium retail offerings along this section of George Street are rarely offered to the market and the high-exposure location of this asset is second to none.”
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