Sydney, 10 February 2016 – A commercial site across from celebrated Sydney eatery ‘The Grounds of Alexandria’ has sold to Alan Coats Pty Ltd for $3 million – representing a record for the area.
Located at 100 Collins Street, the 443sqm ground floor commercial strata office/ showroom suite features ample parking, modern facilities and location in the prestigious “Collins on Bourke” development which benefits from on-site offerings such as Vicinity, Plus Fitness and Explore & Develop Childcare
The site was sold with an existing lease to strong covenant tenant - Carrington Logistics, which has been in operation for over 30 years. The tenant is committed to a term ending 2019, with option for four year extension, on a rental of $200,000 - $213,000 per annum net.
CBRE’s Tony Braham negotiated the sale on behalf of HMF Custodian Pty Ltd.
The sale price represented a yield of 6.4% - a strong result Mr Braham attributed to the urban gentrification currently underway in the property’s surrounding area.
“The site was secured by the vendors only 18 months ago for $2.2 million and in a short time has experienced an uplift in value of approximately 40%.”
“The buyer was attracted to the stable income offered by the existing tenant and desirable location in the heart of one of Sydney’s growing districts,” said Mr Braham.
“Demand is currently very strong or this type of property, as demonstrated with the competitive sales process where many buyers narrowly missed out.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.