A suburban Sydney retail holding with a three bedroom unit at the rear was sold at auction yesterday (8 July) by Colliers International when the hammer fell at $1.086 million after registering 29 bids.

Colliers International Director of Investment Sales Matthew Meynell and Associate Director Brian McInally sold the property on behalf of vendor Nathan Merchant.

The single storey freehold property, at 58a Thompson Street in Drummoyne, generates a double income of $62,400 per annum with a successfully run 57sq m café operating on the main street and a 90sq m fully renovated unit at the rear, accessed off Podding Lane.

The café is on a three year lease until 2012, with a three year option, and the unit is on a new lease until mid next year.

Mr Meynell said the purchaser, a local investor, specifically targets suburban retail and residential holdings with solid tenants and leasing profiles.

"The Inner West and Drummoyne, in particular, is currently a property hot spot thanks to close proximity to the CBD and limited supply," he said.

"There has been limited investment property opportunity for quality commercial stock in the area.

"Given its excellent presentation and condition, and generating steady cash flow and consistent capital growth, I wasn't surprised by the spirited bidding at auction and its ultimate sale."

The café, known as T.A.N.K. and located just 200 metres from Iron Cove Bay and the famous Bay Run, has seating for about 30 patrons including some pavement dining.

 The unit features and open plan lounge and granite kitchen with gas stove, polished floor boards in the main living area and carpeted throughout the rest.

 

For further information please contact:

Sarah Stewart
National Communications Manager
Tel: +61 2 9257 0210
Mob: +61 411 66 1544  
Email: sarah.stewart@colliers.com