This article is from the Australian Property Journal archive
A SOUTH western Sydney building home to major lender NAB for more than half a century has sold under the hammer for $10.25 million.
The Cabramatta building attracted 10 bidders and 34 total bids before selling at 32% above the reserve and on a passing yield of 3.59%.
It has been home NAB for over 50 years and comes with two other income streams including an accountant and migration agency. The 316 sqm property at 22 John Street has a net yearly income of $368,469 plus GST and a total net lettable area of 636 sqm.
“Well-leased commercial properties in highly prized Sydney metro locations continue to attract strong investor interest from both local and overseas buyers despite the current changing capital market,” said Colliers’ Harry Bui, who sold the property with colleague Andrew Bui.
“While some market commentators may be predicting a price correction, we continue to see that the current low interest rate environment will actually lead to increased buyer demand for good, well-credentialed property.”
Bui and Bui also at auction a Yagoona TAB building for $1.6 million on a passing yield of 3.38%. The 371 sqm building has a prominent Hume Highway position with over 60,000 passing vehicles every day and sold with a three-year lease to 2024 with options extending to 2030.
In the neighbouring suburb of Condell Park, Colliers’ Nick Estephen and Thomas Mosca sold a strip of retail property for $3.4 million, the first time the asset had traded in close to 70 years.
Seven bidders at the auction of 49-53 Simmat Avenue pushed the price $150,000 above the reserve, and the property sold on a net passing yield of circa 4.56%. Three tenants at the property have secure three-year leases.
“Despite current economic times, people are still seeing the inherent value of owning commercial real estate assets in thriving local retail precincts. Whilst there has been a recent increase in interest rates, they are still at comparative historic lows from a macro-economic point of view,” Estephen said.
Mosca said the commercial strip of Condell Park is an extremely tightly held precinct with very little vacancy, reinforcing the security of income from the building and giving any landlord strong negotiating power when it comes to lease renewal.
