20 Bayswater Road, Potts Point

Spotting the gem in an area undergoing transformation


Sydney, NSW





Original Strategy

The Bayswater Terraces were bought following a failed expression-of-interest campaign. The four heritage-listed Victorian terraces housed mainly nightclubs and associated tenants. The introduction of the lockout laws in 2014 had a devastating effect on the Kings Cross area and its properties. Buyers fell into two camps; those who wanted long term income (and this was now uncertain), and those wanted the terraces vacant so they could initiate a residential redevelopment. This was unlikely as one tenant, The World Bar, had a long-term lease.

ECG took the view that either strategy would be profitable if executed properly.

The projected returns were 6% to 8% over the term of the investment, and a seven-year fund was established to carry out the strategy.

The Journey

At settlement, the terraces presented terribly. They were night-time economy buildings, and the primary challenge was to turn them into daytime economy buildings.

Our focus was on restoring dignity to these four beautiful Victorian terraces. The failed nightclub was converted into an F45 gym, and the process began from the roof down to refurbish the terraces. Step one was to make them waterproof and fix the roof. We then went through each terrace, refurbished all the common areas and stripped out the poor presenting office suites.

Following these renovations, the terraces leased up easily, with the result that income on the office suites doubled. As each terrace was separately titled, we concurrently engaged Antoniades Architects to develop concept plans to convert the properties back to four lavish residential terraces. This was an unlikely outcome because of the heritage restrictions, but it opened the terraces up to a broader buyer pool and assisted in the outstanding sale result.

Our approach

The property must make sense. There needs to be a sensible plan to achieve the projected outcomes. If it has good bones, is in a great location, and has multiple options to achieve the requisite returns then we’re interested.

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Investor alignment

Interested in joining our next fund? Let’s talk.

© Eagle Property Group. ABN 9915 9438 623 All Rights Reserved. The references to ASIC and APRA above do not in any way intend to show or infer that Eagle Property Group has been endorsed, is associated with, or approved by either of these bodies. Eagle Property Group operates under Australian Financial Services Licence (AFSL) no. 402998. This AFSL is held by Crest Funds Management Pty Ltd, a company wholly owned by the shareholders of Eagle Property Group. By virtue of the AFSL, Eagle Property Group is regulated by the Australian Security and Investments Commission. Site made with love by Orange Bicycle