This article is from the Australian Property Journal archive
THE Albury store of the electronic and whitegoods retailer The Good Guys has been picked up by a local investor for $5.175 million, completing the $150 million portfolio sale 15 retail outlets owned by the company’s founding family.
Savills agents Clinton Baxter, Nick Peden and Jesse Radisich negotiated the sale of 437 Young Street on the New South Wales border on behalf Andrew Muir, whose father founded The Good Guys in Essendon in 1952.
JB Hi-Fi acquired the company two years ago for $880 million, and the Muir family retained control of the freeholds.
The Young Street property encompasses a 5,100 sqm corner site with a 2,910 sqm showroom leased to The Good Guys on a five-year deal with a five-year option and a net income of $448,160 per annum plus GST.
“Investors are desperately seeking well-located retail properties with long leases and attractive rental yields, and are prepared to look beyond the major metropolitan areas to meet their purchase objectives,” Baxter said. “The major banks are certainly influencing the buying market by prioritising stability of income and calibre of tenant.”
The portfolio sell-off has been inching towards completion since June, and has included the sale of five properties to a Sydney-based investment fund for $63 million in the middle of last year.
Of the 15 assets put to the market, 12 were located in Victoria and New South Wales. The Victorian properties are in Ballarat, Bendigo, Geelong, Hoppers Crossing, Mildura and Thomastown, as well as sites at Albury, Ballina, Bathurst, Caringbah, Coffs Harbour and the Warrawong site in NSW.
The others were in Cairns and Ipswich in Queensland, and O’Connor in Western Australia.
Australian Property Journal
