Mike Cannon-Brookes buys Woollahra landmark from German government for $18m

Tech billionaire Mike Cannon-Brookes has forged ahead to buy a landmark Woollahra residence from the German government for about $18 million amid a sharemarket rout causing a dent in his wealth from the economic fallout of COVID-19 earlier this month.

The purchase price is substantially more than other expressions of interest in the former official residence to Germany’s consul-general, and was lodged after the property’s expressions of interest deadline of March 6.

It is the sort of bullish trophy purchase for which the co-chief executive of software giant Atlassian is renowned, having bought Australia’s most expensive house for $100 million in 2018 in Point Piper to take his total property purchases of recent years to more than $168 million.

Despite setting a Woollahra house price record — easily topping the $16.5 million high set in 2016 by the nearby 1930s residence Listowel — the sale is not expected to bolster Sydney’s prestige market sentiment given it comes amid a global sharemarket rout.

The Atlassian share price has not been spared the rollercoaster in values as COVID-19 hits the US sharemarket, falling from $US153 on March 4 to $US133 a few days later when Mr Cannon-Brookes offered on the property.

Sources say Mr Cannon-Brookes was only able to lodge bullish interest on the property thanks to a stipulation by the German government that offers could be made for up to a month after the deadline.

Mr Cannon-Brookes, whose net wealth was estimated at $9.63 billion in last year’s Financial Review Rich List, is expected to use the vast 2000-square-metre property as an office and studio for his designer wife Annie’s House of Cannon fashion house – previously set at the rear of the couple’s Centennial Park home Braelin, before they sold it two years ago for $16.5 million to prominent art patrons Dr Gene and Brian Sherman.

Ray White Double Bay’s Elliott Placks, Craig Pontey and James Keenan declined to comment on the sale or buyer, but sources who revealed Mr Cannon-Brookes’ purchase say the offer is expected at close to $18 million, given it needed to vastly beat other undisclosed offers at more than the $16 million guide.

A spokesman for Mr Cannon-Brookes declined to comment.

At the close of the expressions-of-interest campaign, Mr Pontey told Domain there were buyers interested in the property as a knock-down rebuild for a new residence complete with tennis court and swimming pool.

It was zoned R3 which opened the way for medium-density developments like apartments, terraces or townhouses with council approval, and potential for boarding houses, bed-and-breakfast accommodation or a daycare centre.

The German government listed the property in the heart of Woollahra’s traditional consular belt in January with a $16 million guide, the first time it was offered for sale since 1974 when it was bought for 1.54 million German marks from German entrepreneur Erich Glowatzky.