The lease of a group of historic Sydney terraces dating back to some of the earliest days of the British colony have sold for more than $36 million.
The 99-year leasehold of the Longs Lane Terraces – which includes 18 properties on the one title – was sold for $36.25 million in October by Stuart Cox, Neil Cooke, Johnathon Broome, Andy Hu and Jordan Lee of Savills Australia.
Real estate private equity firm NashCap purchased the leasehold in The Rocks in partnership with Assembly Funds Management in early October with a 30-day settlement.
The terraces include 17 residential dwellings and one commercial building, with all buildings originally built between 1822 and 1992.
Fourteen of the terraces are state heritage listed and include examples of early 20th-century government-built workers’ housing projects initiated by the Housing Board Act of 1912.
Only nine of the 18 properties currently have tenants and the group boasts a current income of around $230,000 a year with “significant potential value uplift”.
Mr Cox, director of residential site sales at Savills Australia, said The Rocks is an enviable location.
“Whether you’re a tourist or a local resident, The Rocks encapsulates an incredibly unique atmosphere with a character not found elsewhere,” he said.
“The Sydney CBD is ever-evolving and continues to lead the way as a forward-thinking international city and the historical Rocks precinct is an extension of that.”
Savills sold the leasehold on behalf of the NSW Government, who said the sale of the lease will help boost investment in The Rocks.
“The Government is constantly looking at opportunities to ensure its property assets are owned and managed in a way that delivers the best social, economic and heritage conservation outcomes for communities across NSW,” Minister for Water, Property and Housing Melinda Pavey said.
“The sale of the Longs Lane terraces via a 99-year lease allows private sector investment and innovation to play a key role in conserving and bringing these prized properties to life, while also keeping them in government hands in the long term.
“It also means tens of millions of dollars will be unlocked and reinvested into much-needed infrastructure projects and services that will help communities across this State get back on their feet again following this latest COVID-19 crisis.”