This article is from the Australian Property Journal archive
A HONG Kong-based investor has trumped strong competition to acquire a South Sydney retail centre with development potential for $17.6 million.
LJ Hooker Commercial Sydney’s John Romyn, Stanley Wang and Barry Griffiths negotiated the sale of the PYD interior design and homewares centre at 197 Young St Waterloo.
The agents said the deal reflects a record low 6% initial yield for the property, which is not fully leased. When it is fully leased, the property has the potential to realise an 8.3% yield.
Romyn said the low yield reflected continued confidence in retail assets amidst a backdrop of e-retailing.
“LJ Hooker Commercial Sydney has received strong interest for assets with a tenant mix that offers a complete consumer experience,” Romyn said.
“Housing a suite of premier designers, consultancy services and a funky café makes PYD a unique and comprehensive experience for consumers. The buyer really responded to this during the marketing phase, and was quick to secure the premises,” he added.
The centre comprises 3,230 sqm of retail as well as 1,100 sqm of latent developable land.
Romyn said the property is one of the few centres in the South Sydney area, which caters purely to retail, because the majority have a retail and office mix.
On the other side of the city, an office at 3 Bridge St in Pymble was sold to a local private investor for $14.6 million at a passing yield of 6.47%. Knight Frank’s Tyler Talbot and Savills negotiated the sale on behalf of GDI No.38 Asset Pty Ltd.
Australian Property Journal
