16 Rees Street, Mays Hill has been listed to market by Sydney-based developer Revelop via an expressions of interest campaign.
Hmlet leased the property in 2019 in a deal negotiated with Revelop that saw the coliving provider take on the property, located around two kilometres from Parramatta, for an initial period of 10 years.
Constructed in 2018, the 875-square-metre property consists of 15 apartments, ranging from one-, two- and three-bedroom duplexes, all with balconies. It also has a large, rooftop entertaining terrace which is shared by all occupants. There is approval to convert the property into strata apartments.
The sale is being managed by JLL’s Dylan McEvoy and Gordon McFadyen.
McFadyen said: “The unique proposition Hmlet’s model presents to the residential leasing market navigates the current leasing volatility in the traditional residential leasing market. Investors are not only acquiring a secure income stream but also a professional real estate manager who is dedicated to maintaining the high standards and occupancy of the apartments. Coliving is a niche sub-set of the rapidly emerging build-to-rent housing sector and is particularly attractive for investors that want reliable steady income with no leasing liability and fixed rental increases per annum.”
The property is currently generating around $401,700 per annum with three per cent annual increases.
“Residential rental demand and income tends to be very stable relative to commercial property sectors, allowing it to deliver investors a strong long-term risk adjusted investment return,” McEvoy added.
Room prices at the Mays Hill currently start at $298 a week, with a three-bedroom apartment renting for $1045 per week.
Founded in Singapore and backed by venture capital giant Sequoia capital, Hmlet operates in Singapore, Hong Kong, Sydney and Tokyo.