Adelaide, 09 March 2016– A local private investor has acquired a tightly held Golden Grove retail complex for $3,950,000 at auction.
CBRE’s Will Brown and Alistair Laycock handled the sale of the neighborhood retail complex, located at 1040 The Golden Way.
The sale price represents a yield of 7.5% - a strong result which Mr Brown linked to the increasing investor demand for well-located retail sites.
The neighborhood retail complex offers a total building area of 850sqm, which is divided into three tenancies. It is situated on a large land holding of 2,462sqm, which provides for 38 car spaces and more than 40 metres of street frontage to the Golden Way.
The complex is tenanted by major fitness chain Jetts Fitness, National Pharmacies Optical and Cafe Primo. The tenancies have a weighted average lease expiry of 5.3 years with a net income of approximately $298,000 per annum.
Mr Brown said the secure income of the centre, in addition to its strategic location along a major arterial road and within close proximity to other leading national retailers, contributed to the competitive sale.
“The sites location at the forefront of Golden Grove Village Shopping Centre, which houses leading retailers including Big W, Foodland, Target, Dick Smith and First Choice, ensures consistently strong foot traffic,” said Mr Brown.
“The public auction saw five bidders competing to secure the well-positioned retail complex, with buyers attracted to the high-profile position, secure tenants with long term trading histories and the ability to capitalise on the low interest rate environment,” Mr Laycock added.
“The investor market just continues to go from strength to strength. We have multiple buyers seeking investment product across all price bracket; if you’re an owner holding a well-leased asset, it’s an exceptional time to sell and take some super-profit.”
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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.