Sydney capsule hotel for sale
- The building that houses the Space Q capsule hotel has been put up for sale by Knight Frank and Savills
- Consists of a large-scale ground floor and retail space leased to Hisshou Teppanyaki
- Should arouse the interest of foreign investors
An interior Sydney property currently leased to the iconic Space Q capsule hotel has gone up for sale.
Also known as “pod hotels”, capsule hotels were developed in Japan to provide a basic, inexpensive overnight stay for guests who could not afford the larger accommodation offered by conventional hotels.
Most infamously, capsule hotels are stereotypically used by Japanese employees who miss the last evening train and are too drunk to get home safely.
Since then, capsule hotels have evolved to accommodate both men and women (sometimes separated by several floors) and are common in 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 ground floor and mezzanine retail space leased to Hisshou Teppanyaki, with the top four levels leased by Space Q.
In total, the building has 966 square meters of gross leasable area, including 180 square meters on the ground floor on levels one to four. It stands on a plot of 231 m².
The property is owned by Roje Brothers Pty Ltd, which has owned it since 1992, local manager and solicitor Raymond Lee said.
Prime location on George Street to attract foreign capital
Linda Zhu and Dominic Ong of Knight Frank are bringing 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 location on George Street, as well as its prominent street frontage and range of value opportunities. added.
‘The property is fully let, offering strong holding income, but also has favorable planning controls with a height limit of 50 metres,’ she said.
“Occupying a prominent position on George Street, the property is located within the growth corridor of the New South Wales Government’s multi-billion dollar Tech Central district, adjacent to Sydney Central Station.”
Linda Zhu, Knight Frank
Mr. Hu added, “We see that many active offshore capitals are actively seeking opportunities in this district.”
“Upscale 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.”