This article is from the Australian Property Journal archive
A Super Amart store in Sydney’s western suburb of Auburn has changed hands for $28.25 million, netting the vendors a $9 million gain in just two years ago.
The 2.51-hectare 311 Parramatta Road property comprises an 8,451sqm showroom and warehouse facility leased to the furniture retailer on a 10-year deal with options until 2033, returning $1.77 million per annum net.
CBRE agents Justin Dowers, Nick Willis and Peter Vines sold the site on behalf of a wholesale syndicate managed by Elanor Investor Group, which had acquired it in 2014 for $19.25 million.
“The opportunity to acquire a significant, inner Sydney metropolitan retail investment, underpinned by a large landholding in one of the city’s strongest growth corridors, attracted interest from a range of local, national and offshore investors.
“The limited supply of quality retail assets coming to the market, coupled with increased investor demand, is driving continued yield compression in the sector. This is particularly evident with large format retail assets due to their typically low maintenance and significant landholding size that offer future development potential,” Dowers said.
He added that there is a significant level of demand for single tenant investments, as investors continue to look at diversifying towards less management intensive properties.
Australian Property Journal
