A premium retail investment in Tranmere, which is occupied by a Star Discount Chemist, has sold under the hammer to a foreign investor for $1.412 million – reflecting a return of 5.72%.
CBRE’s Harry Einarson and Ben Heritage were appointed to market the 150-152 Glynburn Road property on behalf Star Pharmacy Group, with the campaign receiving over 50 enquiries and multiple bidders on the day of auction.
Mr Einarson said: “This is one of the first transactions we have seen in the market since the July 1 reduction of stamp duty and bodes well for a strong finish to the 2017 calendar year, with a number of similar assets set to come to market in the coming months.”
“Our Adelaide investment market is still strong for properties that offer security of income and good locations, clearly two boxes that were ticked by this property."
Mr Heritage added a reduction in stamp duty will in time prove to be a massive win for both investors and vendors moving forward.
“The reduction in costs should assist investors looking to expand their portfolios, while vendors will enjoy a more competitive market of buyers seeking out quality properties,” Mr Heritage said.
The 760 sqm site comprises a 163 sqm building and 13 on-site carparks. Additionally, the property is within commercial zoning, offering the purchaser flexibility for numerous business related uses including offices, consulting rooms and retail showrooms.
The Star Pharmacy Group is one of Australia's leading pharmacy groups with 47 pharmacies located across QLD, NSW and SA. The group incorporates a number of independent community pharmacies and also national pharmacy brands.
In 2013 the group formed their own national brand, Star Discount Chemist. Since then the Star Discount Chemist brand has rapidly grown to 25 stores in SA, NSW & QLD.
The group has taken a long-term lease over the building expiring May 2022, with three further options of five years.
Star Pharmacy Group recently rebranded the site to a Star Discount Chemist and invested in refurbishing the building’s internal fit out and exterior, further demonstrating the group’s commitment to the site and to the national expansion of the Star Discount Chemist brand.
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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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.