Investment sales are breaching the $500 million mark, boosted by the purchase of the David Jones store at 77 Market Street by retail landlord Scentre Group and developer Cbus Property.
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CBRE's Scott Gray-Spencer and Savill's Simon Fenn advised on the $360 million sale, which will see the store revamped into a new retail precinct and apartments in the air space.
Mr Scott Gray-Spencer said demand is very strong for assets with development potential.
Another significant property on the market is at 90 Crown Street, in Wollongong's central business district, by Centuria Property Funds.
It is a seven-level building with a passing net income of about $3.64 million per annum.
The A-grade building's sale is being managed by Knight Frank's Richard Garland and Jonathan Vaughan, in collaboration with MMJ Real Estate, Wollongong's Geoff Jones and Travis Machan, and Tim Jones on behalf of Centuria Property Funds.
According to Mr Garland, director of commercial sales, Wollongong is a strong and fast-growing market and he is anticipating interest in the property given the strength in the market from local high-net-worth investors, local syndicates and offshore investors.
MMJ Real Estate Wollongong's managing director Geoff Jones said the sale comes as more than $1 billion has been invested in new development and infrastructure in the CBD in the past two years, including significant upgrade to the adjacent Crown Street Shopping Mall.
Mr Vaughan, associate director, commercial sales, said Wollongong's office market is moving from a manufacturing to a service-based economy.
A recent Knight Frank found about 3773 jobs will be created over the next 20 years in Wollongong's CBD, equating to office demand of about 54,280 square metres.
Meanwhile, TFE Hotels will operate a new Adina Apartment Hotel in Sydney's Macquarie Park at North Ryde, for owner STARIN, which is a Sydney-based boutique fund manager that engages in prime commercial property of hotels and serviced apartments.
The hotel, designed by Group GSA, will offer views of Sydney's city skyline from its 19 storeys and will comprise 154 hotel apartments, a ground- floor reception, cafe and bar with an outdoor area and conferencing. Construction is starting now with planned completion at the end of next year.
