The home of Adelaide’s renowned National Pharmacies in Morphett Vale has sold under the hammer for $2.285 million – reflecting a tight yield of 6.39%.
CBRE’s Ben Heritage and Will Brown handled the sales process of 188A Main South Road, which involved a four week campaign and onsite auction.
Located on a 640sqm site, the 448sqm two storey building has been home to National Pharmacies for almost two decades, with its current 10-year lease due to expire in 2021.
Mr Heritage said the opportunity to acquire a secure leased investment attracted strong buyer interest.
“Over the course of the four week campaign, we received almost 50 enquiries – reflecting the strong appeal of this asset, which can be attributed to the blue chip tenant, main road location and substantial lease term,” Mr Heritage explained.
Located approximately 25 kilometres from the Adelaide CBD, the property is located on the eastern side of Main South Road in a strong performing retail precinct.
Mr Brown said the property’s position in a proven retail location helped underpin a strong result.
“As demonstrated by this sale, leased investments continue to be keenly sought after, with investors willing to pay prices with tight yields to acquire a foothold in coveted locations,” Mr Brown explained.
“Furthermore, given the current low cost of finance and state of other financial markets, the property market is increasingly becoming a preferred investment when compared to the returns provided by term deposits and the share market.”
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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 (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.