Sydney’s iconic Castlereagh Club, home of the City Tattersalls Group, has hit the market, capturing the interest of local and offshore investors.
First formed in 1895, City Tattersalls has been part of the fabric of Sydney for generations, expanding from its original premises in Pitt Street to incorporate Barracks on Barrack Street and The Castlereagh. Once the stamping ground of bookmakers in the days before online betting, the club’s membership has included the likes of Dennis Lillee, Gough Whitlam and Dawn Fraser, and still boasts a 20,000-strong membership.
An integral part of the City Tattersalls Group network, The Castlereagh Club is the main sports and recreation-orientated facility of the historic group; underpinned by a diverse income stream from club-owned World Gym, state-of-the-art sports, and gaming bar and dining.
With an impressive street frontage on 197-199 Castlereagh Street, the property is well located within the core of the Sydney CBD, moments from the future Pitt Street Metro Station and just 200 metres from Town Hall Station, QVB and George Street.
For sale through Frederic Le Fanue, Bridhe Woods and Jack Harrison of Cushman & Wakefield, and James Aroney, Sophie Tieman and Willem Watson of JLL, the historic freehold property is being offered with a valuable triple net lease and long weighted average lease expiry with guaranteed rental growth.
It has undergone multi-million-dollar renovations over the past two years and comprises an approximately 2,622sqm holding fully leased to the City Tattersalls Group until 2031, with 10 years of options and fixed 3.5 per cent annual rent increases.
“There is a scarcity of quality investment offerings within the Sydney CBD, particularly at this sub-$50 million price point,” says Harrison.
“Additionally, The Castlereagh Club is an iconic piece of Sydney’s history. The upgraded offering of a brand-new restaurant, designed by celebrity chef Colin Fassnidge, is sure to attract significant capital from a large pool of buyers, particularly as the asset also holds more than 100 gaming machine entitlements”.