Keith Johnson receivers sell skinny sought-after Sydney heritage building
After 36 bids from six interested parties, a heritage Sydney office building with a ground-floor bar sold under receivers’ instructions at auction today.
The five-level Kent Street building was knocked down in packed rooms for $3.95 million by auctioneer Damien Cooley from Cooley Auctions.
It last sold at $3.45 million in 2007 when bought by a subsidiary of Keith Johnson’s company Johnson Property Investment.
The building is part of the 1888 Merchant and Partners warehouse building, which has stucco detailing designed in the Victorian Free Classical style.
The largest residential land developer in NSW went into administration in April with the creditors owed about $150 million.
The secured creditors are owed $132 million including the Seventh Day Adventist Church ($69 million), St George Bank ($32 million), Greshams ($13 million) and National Australia Bank ($4.7 million).
The unsecured creditors owed about $16 million.
Slow development approvals from government and falling land values after the global financial crisis were cited as reasons for the company's position.
The company retains its holdings of 8,000 lots in NSW, which had an estimated worth $197 million at its peak, but their value plummeted to $67 million after the global financial crisis.
Johnson Property Group assets in the Hunter include 2,500 lots at Cooranbong, 2,000 lots at Bellbird, Cessnock, Trinity Point marina, and residential and tourist sites at Morisset Park.
In March Johnson confirmed he had been a victim of a sophisticated international scam.
The Kent Street building has a net lettable area of 493 square metres.
Newly opened small bar Since I Left You occupies the ground floor tenancy of 38 square metres on a five-year lease.
It was listed by receivers and managers Taylor Woodings through CB Richard Ellis agents Tim Grosmann and Rohan Ramsay.
Tim Grosmann says rarely had such small quality freehold become available within the CBD.
“Since the City of Sydney’s introduction of the Liquor Amendment (Small Bars and Restaurants) Bill 2007 the CBD’s laneways have been revitalised, with small bars such as Since I Left You well positioned to capitalise on previously unusable space,” Grosman adds.
