Strong competition for Sydney's popular large format retail precinct
A private investor has snapped up a new, purpose-built, large format retail (LFR) building in Western Sydney for $14.35 million from Hydrox Nominees, with a passing initial yield of 6.47 per cent.
Located at 80 - 82 Mulgoa Rd, Penrith, the building comprises approximately 2,750sqm* of GLAR and is tenanted by a 2,509sqm* Freedom Furniture and a complementary Guzman Y Gomez of approximately 191sqm – both of which are on a 10 year lease term.
The sale was negotiated by James Wilson, Harry Bui and Paul McGlynn from Colliers International who said Mulgoa Road is regarded as one of Sydney’s most sought after large format retail precincts and will be further enhanced by the introduction of the brand new Freedom Furniture showroom and neighbouring Masters Home Improvement store.
According to James Wilson, Director of NSW Retail Investment Services, “This sale reflects the highly competitive nature of Sydney metropolitan retail investments, particularly in the private investor sector (dominated sub $30 million price point) where there is strong market depth for high profile investments featuring secure long term leases to national covenants.”
The 7,788sqm* site opened in December 2015 and comes with on-grade car parking for 95 vehicles and occupies a prominent position on Mulgoa Road, the major arterial road linking the M4 Motorway and Penrith CBD. The property is two kilometres south of the Penrith CBD and approximately 56* kilometres west of the Sydney CBD.
“The high level of enquiry for Western Sydney retail investments is a reflection of the evolving perception of growth for the region, with investors seeking to capitalise off the back of the assumed growth from government investment into infrastructure including the highly publicised Badgerys Creek airport,” said Mr Wilson.