47-49 Chippen Street, Chippendale, NSW 2008

Situated in the vibrant heart of Chippendale, 47-49 Chippen St offers a unique investment opportunity just minutes from the CBD. This bustling area is known for its thriving cultural scene, top-tier dining options, and exceptional connectivity, with Redfern Station only a 500m walk away and Central Train and Metro Station just 750m away. These convenient transport links make Chippendale a highly desirable location for serviced apartments, attracting guests who value ease of access to Sydney’s central and surrounding areas.

This high-yielding strata property, currently occupied by NESUTO as a sub-tenant until 2028, offers a rare chance to own the essential spaces critical to a successful serviced apartment operation. 

As the exclusive owner, you hold the operational backbone of this high-demand property with 196 sqm of essential space:
• Reception and Office: 28 sqm
• Storage Areas for Cleaners (across all floors): 78 sqm
• Loading Dock (internal and external): 52 sqm
• Laundry Room: 24 sqm
• Car Space: 14 sqm
Total Strata Area: 196 sqm

Post-lease, you’ll be in a prime position to either re-sign with the existing tenant, OCCUPY YOURSELF or bring in a new operator, as access to these essential areas is required to run the serviced apartment business. This exclusive control offers significant leverage to maximize income potential.

Financial Summary:
• Net Rent: $40,314.20 net + GST per annum from 1 February 2025
• Lease Term: 5 years, 1 month, and 1 day (ending 1 March 2028)
• Options: No further options
• Annual Increases: 3% annually
• Security: 3-month bank guarantee
• Outgoings: All outgoings paid by tenant

Key Features:
• High-yield investment: Secure a solid 7% net return
• Exclusive control: Ownership of essential spaces integral to serviced apartment operations (196 sqm total)
• Strategic future options: Retain the existing sub-tenant or bring in a new operator post-2028, leveraging exclusive ownership of essential areas
• Prime tenant: Currently occupied by NESUTO as sub-tenant: Leading hotel and apartment hotel operator
• High-value common areas: Includes access to a large rooftop, a gym with a sauna, adding appeal to serviced apartment guests and enhancing property value

Seize this unparalleled opportunity in a rapidly growing area to make a sound, high-yielding investment with strong future potential.

Expressions of Interest closes Thursday, 5 December 2024 at 4pm.

Please contact PropertyFox's agent Lachlan Worthington on 0421 777 889 to discuss in more details or to organise an inspection.