This article is from the Australian Property Journal archive
A WESTERN Sydney Centrelink site has changed hands for the first time since it was constructed in the 1980s, selling to an investor based in the area for $13.06 million.
The recently-refurbished 5-9 Macquarie Road property in Auburn has a building area of 1,870 sqm and sold on a passing yield of 2.69%.
Its Commonwealth government lease runs to December 2026 with two three-year options and annual net income of $331,170.
Originally a Westpac cheque-clearing centre, the 1,104 sqm single-level office has basement parking for 40 cars and is within walking distance of Auburn station and Auburn Central Shopping Centre.
CBRE’s Robert Dowdy managed the sale campaign on behalf of the Queensland-based family that had owned the property since it was built.
He said the yield is a new record for $10-million-plus properties in western Sydney, and on par with yields being seen in the eastern suburbs.
CBRE has also just sold a 585 sqm Commonwealth Bank building in Coogee for $11.2 million, on a yield of 3.6%. CBA has a new three year lease with options over the two level property at 199 Coogee Bay Road.
Dowdy said a yield of around 5% was anticipated for the Auburn site, but the result “exceeded all expectations in further proof western Sydney is on the map for buyers seeking investment opportunities”.
“The asset’s central location in Auburn, proximity to Parramatta, blue-chip government lease and potential development upside drove strong interest, and the local buyer beat competition from parties based in Sydney’s eastern suburbs and north shore, interstate and overseas.”
More than 100 bids were lodged during the auction from 15 registered bidders that included investors, owner occupiers and developers.
The property’s B4 mixed use zoning provides for a 5:1 floor space ratio that could permit a building height of 38 metres or 10 levels.
