This article is from the Australian Property Journal archive
A NEW South Wales investor has trumped offshore players to nab the Coles Five Dock for $19.66 million on a yield of 4.89%, setting two new records.
The 4-12 Garfield St Five Dock was sold by Colliers International’s James Wilson and Alexander Elliott after receiving over 200 enquiries.
“As the first full-line Sydney metropolitan supermarket brought to market since 2015, we were inundated with established and emerging domestic and offshore investors,” Wilson said.
“The yield achieved at Five Dock easily surpassed the previous NSW record which was set by the sale of a freehold Woolworths supermarket at Casula in 2015 on a yield of 5.11% and also set a new national record for a strata titled supermarket,” he added.
“The transaction of this strata supermarket, highlights the maturity of Sydney’s investment market to focus more on the underlying performance of the asset as opposed to its title. This is a positive sign for the maturing Sydney retail investment market and great news for mixed use developers looking to maximise their returns on Sydney developments,” Wilson continued.
The 3,333sqm stratum supermarket comprise a restaurant and secure basement parking for 163 vehicles and is part of a mixed-use development in the affluent suburb of Five Dock, less than 10 km from the Sydney CBD.
The total GLA is 3,430sqm with a net income (fully leased) of approximately $960,489 pa.
“During the campaign we experienced unprecedented levels of interest which carried through to the highly competitive bidding process,” Elliott said. “With over 200 enquiries, the large number of unsuccessful bidding parties, not just enquiry, is testament to the demand from high net worth individuals seeking secure retail assets for personal investment.”
Australian Property Journal
