Sydney stalwart Scruffy Murphy’s Hotel has come to market along with surrounding blocks, representing a big hotel opportunity for the Haymarket site.
With a view to large-scale development, the properties at 43-49 and 51-53 Goulburn St and 698-704 George St have been amalgamated to form a 1,238 m² parcel boasting STCA of up to 41 storeys.
Scruffy Murphy’s is a consistent Top-20 gaming venue. Both it and the adjoining historic Haymarket House sites are in the parcel, which could see retail levels and up to 111 luxury residential apartments and 250 serviced apartments.
The site occupies a large corner of George and Goulburn streets within the country’s most densely populated 1-kilometre radius, and could even be further expanded, given the cluster of low-rise structures on the block.
It is being marketed by CBRE’s hotel and residential development divisions, with expectations of “widespread buyer interest” from overseas and domestic developers and operators.
CBRE national director Daniel Dragicevich told PubTIC the hotel-development trend is a popular and lucrative combination for prominent sites like this.
“As the NSW pubs market continues to evolve, there have been various examples of well-positioned, large-scale venues* being assessed by developers, as the highest and best use of the underlying properties and future development potential become genuine considerations for owners.
“A development that includes the re-establishment of a licenced hotel operation is expected to generate huge interest from national hotel investors, developers and operators.”
CBRE reports that a 50 per cent interest in the retail component of World Square, directly opposite the Haymarket on George site, recently achieved one of the tightest cap rates in Australian retail history.
Haymarket on George will be offered via Expressions of Interest, closing 8 July, 2016.