A Zetland pizza shop has sold for $2.6 million following a hotly contested auction that attracted buyer interest from as far as Greece.
The Domino’s Pizza outlet at 15 Gadigal Avenue is centrally located in one of Sydney’s most densely populated suburbs, which is expected to be home to more than 61,000 people by 2030.
Positioned at the base of Ruby Tower, within Victoria Park in Green Square, the115sqm retail property was sold with a new10-year lease to ASX-listed Domino’s Pizza Enterprises Limited.
The onsite auction attracted significant buyer interest, with seven bidders – including both local and offshore groups - vying for the property.
CBRE’s Nick Willis, who negotiated the sale in conjunction with fellow agent Gemma Isgro, said the property’s secure long term tenure in a tightly held market set the scene for a record result.
“The opportunity to acquire such a premium footprint in Sydney’s inner south-east attracted more than 150 enquiries during the campaign,” Ms Isgro said.
“In particular, we had one party who we had been working for the past six months fly from Greece specifically for the auction. Unfortunately, he was unsuccessful and on the next plane home – giving evidence on a global scale how far investors are now searching for quality investments.”
The property, which is located just four kilometres from the Sydney CBD, was purchased by a private local investor on a yield of 4.6% - representing a record rate per square metre of $22,600 for suburban retail investments.
Mr Willis said the sale demonstrated the continued demand for quality retail investments from national and international markets.
“Bulk auction campaigns continue to achieve low clearance rates, therefore we decided to run a strategic individualised marketing campaign with an onsite auction, allowing us to highlight the property’s strengths in the spotlight it deserved,” Mr Willis explained.
CBRE’s James Beerworth also managed the new 10-year lease to Domino’s at a net annual rental of $120,000.
The Domino’s Pizza outlet at 15 Gadigal Avenue is centrally located in one of Sydney’s most densely populated suburbs, which is expected to be home to more than 61,000 people by 2030.
Positioned at the base of Ruby Tower, within Victoria Park in Green Square, the115sqm retail property was sold with a new10-year lease to ASX-listed Domino’s Pizza Enterprises Limited.
The onsite auction attracted significant buyer interest, with seven bidders – including both local and offshore groups - vying for the property.
CBRE’s Nick Willis, who negotiated the sale in conjunction with fellow agent Gemma Isgro, said the property’s secure long term tenure in a tightly held market set the scene for a record result.
“The opportunity to acquire such a premium footprint in Sydney’s inner south-east attracted more than 150 enquiries during the campaign,” Ms Isgro said.
“In particular, we had one party who we had been working for the past six months fly from Greece specifically for the auction. Unfortunately, he was unsuccessful and on the next plane home – giving evidence on a global scale how far investors are now searching for quality investments.”
The property, which is located just four kilometres from the Sydney CBD, was purchased by a private local investor on a yield of 4.6% - representing a record rate per square metre of $22,600 for suburban retail investments.
Mr Willis said the sale demonstrated the continued demand for quality retail investments from national and international markets.
“Bulk auction campaigns continue to achieve low clearance rates, therefore we decided to run a strategic individualised marketing campaign with an onsite auction, allowing us to highlight the property’s strengths in the spotlight it deserved,” Mr Willis explained.
CBRE’s James Beerworth also managed the new 10-year lease to Domino’s at a net annual rental of $120,000.
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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.
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.
