- The three buildings will be sold as one set
- Noah's Backpackers hosts 260 beds
- Comes as the Eastern Suburbs remains popular with developers and investors
Three iconic Bondi buildings – including Noah’s Backpackers – are up for sale, giving developers a unique opportunity in the world-famous location.
The three buildings, which will be sold in one set, is one of the biggest opportunities seen in the Eastern Suburbs over the past decade.
The 1,087sqm site is home to the 260-bed backpackers along with ground-floor retail and an adjoining apartment block. Additionally, the assets at 2-12 Campbell Parade is zoned B4 Mixed-Use and R3 Medium Density thus allowing significant flexibility and scale for the future owner.
Colliers’ Miron Solomons and, Matt Pontey and Henry Burke have listed the property along with Daniel Marano and Ralph Garofano of Oxford Agency.
“This is by far the largest and most compelling development opportunity delivered on the Eastern Beaches in the last decade,” Mr Solomons said.
“It is such an iconic gateway position and we will undoubtedly receive interest locally, interstate and internationally for this Bondi icon.”
“There has been a lot of discussion of late surrounding the achievements of off-the-plan sales in the Sydney CBD and nearby Double Bay where they are breaking new records of over $100,000 per square metre,” Mr Pontey added.
“It is only a matter of time before the right development is delivered to Bondi Beach which will achieve these exceptionally high revenues in a market which arguably has better amenity and lifestyle.”
Despite being hit hard by the pandemic – with Tourism Adventure Group going into voluntary administration in July last year – some backpacker hostels have pivoted and performed well during the past two years.
Additionally, in February last year, the Byron Bay backpacker hostel sold for $18.55 million.
The Eastern Suburbs of Sydney is well known for having some of the most expensive real estate in not just Australia, but globally.
In particular, the past few years has seen investors and developers – both local and abroad – targeting the more risk adverse tightly held suburbs in the area.
“With the Eastern Suburbs being perceived as a tried and tested established market, developers are seeking out opportunities to activate their capital and look to the future,” Mr Burke said.
“With supply continuing to remain limited and the low interest rate environment, it is likely that suburbs such as Bondi Beach will continue to thrive, especially as developers continue to shape and change the face of this exciting market,” Mr Marano added.
Expressions of interest close Thursday, 5 May.