In yet another step toward the full blown one-per-center gentrification of Kings Cross, the heritage listed terraces of 20 – 26 Bayswater road, better known as the home of Candy’s Apartment and World Bar, have been sold for an estimated $12 million to a consortium including Eagle Property Group and hotel entrepreneur Paul Fischmann.
Speaking of the acquisition, reports Commercial Real Estate, Mr Fischmann said, “I’m a firm believer in the gentrification and growth of Kings Cross. These buildings are stunning and in the perfect location.”
Fischmann, the founder and chief executive of 8Hotels and EPG, refused to comment on any of the financial details of the purchase, however industry commentators have estimated the price at $12 million.
The purchase follows recent rises in demand for high end property in Kings Cross and the closure of numerous bars and other small businesses, signalling the lockout laws have proved a boon to real estate agents and property developers, if no one else.
“There are few inner-city areas this close to the CBD and other upmarket suburbs that still have potential for significant transformation,” Eagle Property Group director Lawrence Kopping said of the improved conditions for investors following the introduction of the lockout laws.
Indeed, with median house prices falling over the last few months, and the ever looming threat of government cracking down on negative gearing, the growing interest in luxury properties in Kings Cross might be the shot in the arm developers need to keep their fortunes afloat.
And while the brawls in Kings Cross last weekend suggest that the lockout laws aren’t a foolproof strategy for combating alcohol related violence, (Tyson Koh of Keep Sydney Open pointing out to us in a recent interview that a 32% drop in violence with an 80% drop in foot traffic means violence is proportionally higher) they sure seem to be a doing a good job of driving property prices.
“These are beautiful buildings in an under-performing area that is about to undergo enormous change,” Kopping said of the expected Potts Point property boom.
“We at Eagle Property are always looking to buy in areas that we believe have improvement potential and upside,” he said, suggesting that the lockouts was seeing the area return to the character it was intended to have, that of a mixed use, up-market suburb.
While no news yet on whether The World Bar or Candy’s Apartment’s trading will be affected by the sale, the new landlords being expected to respect any existing leases, it seems the gentrification of Kings Cross is inevitable as even if the lockouts are repealed, it’s too late to save the suburb from corporate interests seeking to buyout small businesses and property owners for long term investment.
