A rare, consolidated site in the centre of Newcastle has been listed for sale. Known as the City Exchange site, the site was the former Hunter Water headquarters before being refurbished and sub-divided into a Community Title scheme in 2010 by prominent local developer the McCloy Group.

With the gentrification of Newcastle well underway, the site was identified and reconsolidated by the current owners, Eagle Property Group, who saw a vision for reconsolidating the Community Title scheme and creating a site for future re-development purposes, now providing a significant central Newcastle land parcel spanning 6,483 sqm. While the Strata Renewal process has become a known method of reconsolidating sites for redevelopment, this is the first time in Australia a Community Title scheme has been consolidated according to Eagle Property Groups Lawyers. 

With its versatile Mixed-Use zoning and strategic position within the local market, the site presents a compelling opportunity for major multi-sector mixed-use development up to around 35,000sqm of GFA. Given the surrounding uses, current planning controls, and market demand, the City Exchange Site has the capacity to accommodate possibilities that include office spaces, build-to-rent (BTR) properties, medical facilities, hotels, residential units, and associated retail establishments.

JLL’s James Aroney, Mitch Noonan, and Kate Low together with Commercial Collective’s Matt Kearney and Adam Leacy have been exclusively appointed to sell The City Exchange Site (comprised of 426 King Street, Newcastle and 591-615 Hunter Street, Newcastle) via an international Expressions of Interest campaign. 

Mr Noonan said, “The consolidation of the five sites by the current owner presents a scarce offering of scale. In fact, this offering marks only the third time in the past decade that a CBD site of this scale with redevelopment potential has become available on the market.”

This asset not only presents sound development potential due to its significant under-development relative to current planning controls, it also generates secure holding income through five individual buildings spanning 7,000sqm including the iconic former Hunter Water building. These existing assets underwent significant refurbishment in 2010 and now provide a stable revenue stream from a diverse tenant mix, with a weighted average lease expiry (WALE) of 1.73 years by income.

Mr Aroney said, “This exceptional offering provides not only a major future development opportunity but also the chance to enhance the existing assets, while developing parts of the site due to the low site coverage ratio all while benefiting from the strong underlying land value.”

Featuring dual frontages on Hunter and King Streets, the site provides convenient access to retail, public amenities, and transportation infrastructure. The existing assets generate secure holding income from diverse tenants, and the site's scale allows for the creation of a vibrant precinct.

Mr Kearney said, "Newcastle's growth trajectory, driven by a growing white-collar workforce and investment in education and medical facilities, makes this offering even more compelling. The 'City Exchange' site is poised to become a vibrant precinct and contribute to the city's continued development."

With a spectacular location and world class beaches, Newcastle has undergone a major resurgence over the last decade. No longer just a ‘steel city’, Newcastle has a vibrant cultural scene, energetic nightlife, diverse restaurants and is fast emerging as a smart, innovative and sustainable city. More specifically, the Newcastle Urban Renewal Strategy 2012 (NURS) identifies the West End of Newcastle as the future CBD which is proximate to the subject site.

International Expressions of Interest for The City Exchange Site close on 20 July 2023 at 3pm (AEST).