Adelaide, 09 November 2015 – A fully leased retail investment in the heart of the Hutt Street retail precinct has sold to a private local investor for $2.55 million, representing a record in the area.
Located at 195 – 197 Hutt Street, the 211sqm property features prominent 10 metre frontage to Hutt Street, recent extensive refurbishments and vehicular access via rear lane. The site benefits from prominent location in one of the most tightly held sections of Hutt Street, surrounded by a cosmopolitan mix of banks, retail shops, offices, hotels, cafes and restaurants, and nearby residential apartments.
The property was sold with secure leases to two national tenants, Bendigo Adelaide Bank and GIC Australia, which offer a strong income stream of approximately $132,000 per annum. Bendigo Bank has an initial seven year lease, with five years still remaining and GIC Australia has taken a leaseback over the first floor with a brand new five year lease. Both leases have five year extension options in place.
CBRE’s Ben Heritage and Will Brown sold the property via a public onsite auction which attracted over 100 attendees and more than 20 registered bidders.
Mr Heritage said the record breaking sale price, which reflects a yield of 5.17%, reveals the strength of the current market and the increasing investor demand for well-located commercial and retail sites.
“We are currently seeing properties in the CBD and prime city fringe locations with medium to long term leases attracting unprecedented levels of interest. If I was contemplating selling, I would certainly be looking at getting my property to the market this side of Christmas while the market is running hot.”
“Hutt Street has always been tightly held and highly sought after, however the increasing apartment developments mooted for the city will further fuel the investor appetite for this location. The strong demand for the area is evidenced by the number of enquires CBRE has received recently for stock along this cosmopolitan strip,” Mr Brown added.
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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 2014 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.
