“Family offices would love an asset like this. It would be the jewel in the crown of their portfolio. For fund managers there is an eight-year WALE from which they will happily get a good distribution.”
Mr Evgenikos declined to comment on the likely yield.
The building at 7-27 Circular Quay West dates from 1851-2 – part of Sydney’s economic recovery from the 1840s depression – when the first five gabled bays of what is now an 11-bay building were built to serve Scottish trader Robert Campbell.
It was extended to its current size by 1881 and was acquired by the state government in the late 1880s for £275,000 after then-owner the Australasian Steam Navigation Company – which constructed a third level on top of the two-storey structure – went into liquidation.
”Campbell’s Stores represent a surviving example of mid-19th century style warehouses; a building type once common around Sydney Cove, but now rare,” state heritage documents say.
“The gabled bay form, cathead beams, hoists, goods aprons and doors are evidence of an older warehouse style. The form, bars on openings and lack of internal connections between bays evidence the security required for bond store use.”
The sale of the leasehold could trigger a rejuvenation of a key area of the CBD that had become little more than a tourist destination, said architect Hannah Tribe.
“The Rocks feel preserved in aspic at the moment,” she said.
“It doesn’t feel vital and true. It feels like Olde Sydney Town where you see a convict re-enactment. It is a great little retail space, it shouldn’t have Devonshire Tea tourist venues. It would be great to reinvigorate The Rocks.”