This article is from the Australian Property Journal archive
A TROPHY retail corner investment opposite Manly’s famous beach has sold under the hammer for $15.7 million, after tempting more than 400 investors with its tenancy mix headed by international ice cream makers Ben & Jerry’s.
Spanning seven lots, Shops 1-7 at 25-27 South Steyne has a 433 sqm building area offered in one line through CBRE’s Toby Silk, Aaron Arias and Nicholas Heaton.
It has five tenants and currently fully leased, returning annual net income of $731,161. The mix of international and local occupants also includes Manly Fish Market, Manly Fish Café, Blind Barrel and Ezymart.
The sale price represented a yield of 4.66%.
Local, national and international investors, occupiers and syndicators all showed interest.
“Recent times have seen metro markets like Manly strengthen, with people working from home and frequenting local eateries,” Silk said.
“There has been an increase in people moving to the Northern Beaches in search of a better lifestyle – including expats – which has driven property price growth across asset classes.”
The buyer picked up the property as a passive investment.
Silk added that the 4.66% yield reflected a positive trend for Manly and its surrounds, with the historical low cash rate of 0.1% introduced in November boosting the property market, resulting in significant yield compression.
The site becomes one of several Sydney beachfront corner blocks to change hands for circa $10 million or above recently.
Two Bondi blocks sold within weeks of each last year. Havaianas’ Australian importer Maria Maribondoa-Aspden acquired four shops and seven two bedroom apartments in the Seven Ways village for $10.6 million from a family that has owned the building since it was constructed in the 1930s, which followed a North Bondi corner block of four shops and six apartments selling for $25.4 million at auction, almost 50% above the reserve.
The distinctive and dominant multi-coloured Bondi Beach corner building formerly home to Jackie’s café was bought by to a local investor for $9.7 million the previous year.
