A Chinese developer has paid $45 million for an office block and shopping centre in Sydney’s Bankstown held by the same owner for more than 20 years.
According to industry sources a new entrant called Ganghui Pty Ltd is understood to have bought the property known as The Compass Centre at 85-89 North Terrace from The Banna Property Group. The Australian Financial Review first revealed the property had changed hands last week.
“This is arguably a key strategic site for the renewal of the Bankstown CBD,” said Colliers International agent Harry Bui, who brokered the deal alongside Colliers’ James Wilson and Knight Frank agents Dominic Ong and Terry Hassan.
The six-storey office block and retail arcade near Bankstown Train Station has 56 shops and was sold with a design scheme that envisions a 477-apartment building and an 8000-square-metre shopping centre. The plans are subject to council approval.
Bankstown Council has invested substantially in the past 18 months to improve the appeal of the suburb’s town centre for both commercial and residential developers and investors. The council has erected a new bus and rail interchange, upgraded Bankstown Plaza and built new infrastructure including an art centre, a new library and knowledge centre attracting more than 400,000 visitors a year.
There are signs the improvements are paying off.
Private developers spent more than $550 million on developments in Bankstown during 2014. There is a further $200 million under assessment, the council said.
“Bankstown is set to boom over the next 20 years with expected population growth dramatically revitalising the suburb, driving it to become one of the largest regional cities of Sydney,” Knight Frank’s Mr Ong said.
Values are moving too. Bankstown Council netted almost $18 million – and $3 million above reserve in mid-March – when it sold a development site across 6355 sq m close to the middle of the suburb’s CBD.
More than 120 domestic and offshore developers submitted inquiries for the Compass Centre, Mr Bui said; it is also sweetened by having four street frontages.