‘King of toys’ accepts discount for CBD office
The owner of the world’s biggest toymaker, Hong Kong based billionaire Francis Choi, has taken a hit selling a Sydney office after five years and a significant renovation.
The 27 level tower, 1 Castlereagh Street, is collecting $196.4 million from SLMC Property Australia, a joint venture comprising Mainboard listed Metro Holdings and Singapore’s Sim Lian – Metro Capital Pte Ltd.
Mr Choi, founder and chairman of Early Light International, often reported as the “king of toys” – also Hong Kong’s 11th richest person – paid Blackstone $220m in 2019.
Another $24m was immediately invested on a renovation, including adding two office levels, while a capital expenditure program – upgrading the lobby and façade, amongst other initiatives – cost $13m.
1 Castlereagh Street
On 1164 square metres, 1 Castlereagh St contains 23 floors of offices, lower level retail and 28 basement car parks.
With 12,418 sqm of lettable area (the retail comprising six per cent or 724 sqm), key occupiers include Citrus Group, Dental Boutique, Verkada and Red Bottle.
Fifteen per cent is vacant (story continues below).
“1 Castlereagh St is…within the heart of the Sydney CBD’s financial core…surrounded by Australia’s most iconic buildings including One Circular Quay, Brookfield Place, Martin Place Metro Towers and Chifley South,” Knight Frank’s Dominic Ong, who brokered the off-market deal with Paul Roberts, Ben Schubert and Jonathan Vaughan, said.
“The property is also directly opposite the newly opened Martin Place Metro Station entrance and within close proximity to the CBD’s world-class transport options including rail, light rail and the ferry,” he added.
“Offshore investors, particularly those from Singapore, have been very active in Sydney’s office investment market this year, with…1 Castlereagh St being the latest,” according to the executive.
The deals have been forgettable for vendors though – including 255 George St, which Mirvac sold in April to Keppel REIT for $363.8m – a near 10pc drop on book value.
In January meanwhile, Singapore’s SC Capital Partners sold Growthpoint a suburban Sydney office – 965 Bourke St, Waterloo – to Growthpoint for $86.96m, about twice what it paid in 2014.
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