Sydney’s iconic The Castlereagh Club, temporary home to the City Tattersalls Group and a restaurant by celebrity chef Colin Fassnidge, has hit the market and may fetch anything up to $45-$50m.
For sale through Cushman & Wakefield and JLL, The Castlereagh Club forms an integral part of the City Tattersalls Group and is currently the main sports and recreation facility of the group. Sydney-based fund manager Fife Capital bought the four-level strata property for $19.85m in 2019.
The Castlereagh Club premises, at 197-199 Castlereagh St, comprises 2622sqm of floorspace which includes a World Gym, a restaurant and modern sports and gaming bar, and is fully leased to the City Tattersalls Group until 2031 with 10 years of options, fixed 3.5% annual rent increases and mark reviews.
City Tattersalls Group has undertaken major renovations at the venue over the past two years, including introducing the Fassnidge venue, and provides a substantial vote of confidence in the longevity of the CBD as a destination for entertainment and community post-Covid, the agents said.
With an impressive street frontage, the property is minutes from the future Pitt Street Metro Station and 200m from Town Hall Station, QVB and George Street.
“We anticipate this opportunity to be highly sought after by a multitude of buyers both domestic and off-shore,” Jack Harrison of Cushman & Wakefield said.
JLL’s Willem Watson added: “There is a scarcity of quality investment offerings within the Sydney CBD, particularly at this sub $50m price point. Additionally, The Castlereagh Club is an iconic piece of Sydney’s history.
“The upgraded offering of a brand-new restaurant, designed by celebrity chef Colin Fassnidge is sure to attract significant capital from a large pool of buyers, particularly as the asset also holds more than 100 gaming machine entitlements.”
The Castlereagh Club will remain City Tatts HQ while ICD Property redevelops the 127-year-old historic site at 194–204 Pitt St which is being undertaken by ICD Property in partnership with First Sponsor.
The project has received planning approval for a circa $505m, 50-storey tower comprising upgrades to the Club’s heritage ground floor including new ground floor retail and restaurants, an upgraded lower bar and grill, a state-of-the-art commercial wellness centre, new bars and sophisticated lounge areas, event spaces, and an innovative co-working club. It will also feature a podium with a connected tower, comprising a 101-room hotel and 241 high-end residences. The project’s next step is to launch a sales campaign, with that timing still undetermined.
