This article is from the Australian Property Journal archive
KNIGHT Frank has sold two ANZ Bank branches in regional New South Wales at auction for $1.33 million.
The properties are located in Cessnock and Narrabri and were previously owned by Magron Pty Ltd.
Knight Frank sales executives James Wilson and Stuart Rodriguez sold the Narrabri property to a local private investor for $660,000. It is a two storey commercial building with parking fully leased to ANZ bank, with four years remaining on the initial lease and an option for a further five years.
Wilson said the sale was struck on a 6.4% yield, showing that local investors are willing to pay a premium for quality assets with secure lease covenants.
The property Cessnock property was purchased by W F Investments Pty Ltd for $670,000, representing an 8.9% yield.
The single level property is well located with high exposure to the main retail strip of Cessnock. ANZ has 18 months remaining on its initial lease, with two five year options.
“The purchaser was able to secure a relatively soft yield due to the ANZ covenant on a shorter term lease,” Wilson said.
Australian Property Journal
