This article is from the Australian Property Journal archive
SYDNEY's inner west is witnessing an increased investor confidence in property investment and development opportunities.
CB Richard Ellis has sold $19 million worth of properties on Victoria Road site at Drummoyne to EG Funds Management.
The parcel of 12 retail, commercial and industrial properties was acquired on an initial yield of 5.5% and is EG’s latest purchase in the area following its circa $10 million acquisition late last year of the Five Dock Bowling Club.
EG’s associate director Mark Watson said the current credit crisis serves as an opportunity to acquire discounted value-add properties across Australia.
“This collection of properties along Victoria Road has leases extending to 2016. EGFM plan to hold the property with a future investment strategy for a medium density mixed use development,” he added.
The 12 properties have a combined net lettable area of approximately 4,300 sqm and current tenants include Bob Jane T-Mart, the United Petroleum fuel station and an Italian seafood restaurant.
CBRE’s associate director Daniel O’Brien said the acquisition highlighted the strengthening investor confidence in Sydney’s inner west.
“With the new Balmain Leagues Club development in Rozelle recently passing through council for a major mixed use redevelopment and the likely redevelopment of Callan Park it is evident this part of Sydney is about to be transformed,” O’Brien said. “Large investors who have previously been cautious are now back into the game. The landscape along Victoria Road is literally reinventing itself with new showrooms going up on nearly a daily basis.”
Australian Property Journal
