This article is from the Australian Property Journal archive
A SYDNEY-based investment syndicate has sold the SUPA IGA in Sydney’s western suburb of Doonside for $18.15 million, netting a tidy profit in less than three years of ownership.
Located at 52 Rosenthal Street, the 4,402 sqm neighbourhood shopping centre is anchored by the 3,500 sqm supermarket and was purchased by a private investment company in an off-market deal at a 5.32% net yield.
It is 100% leased to a wholly owned subsidiary of ASX-listed Metcash on a term ending in 2024, with a 10-year option. There are an additional four internal sub-lease tenancies. The 15,300 sqm site has 224 at grade parking spaces, and holds future redevelopment potential with B2 Local Centre Zoning.
Savills agents Steven Lerche and Andrew Palmer handled the deal. The vendors, headed by Hayben Properties, paid $14.75 million for the centre late in 2015, reflecting an initial yield of 6.1%.
“This transaction is proof that Sydney metropolitan assets sitting on large parcels of land in prime locations remain highly sought after by the private investment market,” the agents said.
They said the infrastructure planned for the Greater Western Sydney Region would result in a windfall for Doonside and surrounding precinct.
“With the release of designated development land throughout the north west corridor, it will allow for further business and housing to be built for the area surrounding Doonside.”
Doonside is located off Doonside Road, connecting the Great Western Highway to Blacktown and is situated near the junction of the M4 Western Motorway and the M7 Westlink.
