Sydney, 2 October 2013- A Commonwealth Bank branch in Coogee has sold in an ‘off market’ deal for $5.59 million, cementing the suburb’s popularity in recent times.
199 Coogee Bay Road was purchased by a private buyer, an expat now living in Japan, for a premium price to avoid the property going to market.The building was purpose built for CBA in the 1980’s and has an existing WALE of 2.5yrs to the CBA with multiple options. The selling agents were Daniel O’Brien and Olivia Skinner of CBRE.
It is the third property this year that CBRE’s Director of Capital Markets, Daniel O’Brien, has sold in the beachside suburb this year.
In February, Randwick Rugby Club was sold for $3.4 million to Lloyd Rothschild Pty Ltd after a 4 week public tender process.“Over half a dozen offers were submitted from investors, occupiers and speculators.The property was very unique as it offered 5m high ceilings and offered 44 basement car spaces.”said Mr O’Brien.
2 Kurrawa Avenue was sold to KHBER Enterprises in April at Auction.The 23-room freestanding boarding house was sold on a 6.2% yield for $4,010,000 after a hotly contested auctionwith 7 bidders and 84 bids.
Mr O’Brien said that he’s sold $13 million worth of property in Coogee alone this year to investors and said that with low interest rates driving yields down, and the fact the election is over, confidence is only going to get stronger.
“Enquiry for eastern suburbs investment stock is as strong as it has been since the peak of the market in 2007. With cash being so cheap at the moment we are finding many high net worth individuals and self-managed super funds are flocking to these sorts of trophy assets, which in turn has compressed yields,” said Mr O’Brien.
Selling agent of Coogee’s Commonwealth Bank Olivia Skinner commented “The beachside suburbs will always attract strong yields and with Bondi looking a little overheated at the moment (recent sale of a WBC for a sub 5% yield in Bondi), buyers are looking at surrounding beachside suburbs for better value.We currently have multiple investors seeking quality investments in the Eastern Suburbs ready to buy now."
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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 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 atwww.cbre.com.au.