Many of the properties within the portfolio are leased to blue chip tenants including NAB, TAB, BP and Viva Energy.
A significant and high-performing landmark in Sydney’s inner west has come to market as part of Colliers’ final National Premium Investment portfolio of 2022.
The Marrickville Ritz, a top 50 performing pub of NSW, is just one of 10 properties throughout NSW and Queensland that are part of the portfolio, including brand new service stations and larger scale high-yielding investments.
With a site area of 942sqm and strong net rental of $544,679-plus GST per annum, the Ritz is considered the jewel in the crown of the Illawarra Road and Marrickville Road retail precinct. It provides plenty of potential with its flexible B2 Local Centre zoning and a building height of 20 metres, allowing for a possible future mixed-use development.
Much of the appeal of the portfolio is that the properties are leased to blue chip tenants including NAB, TAB, BP and Viva Energy, as well as national chains like Carpet Court, Beaumont Tiles and pub operator PHMG Group.
There are four properties located across Sydney, including the Ritz in Marrickville, a NAB Bank in Cabramatta, Domino’s Pizza in Baulkham Hills and TAB in Yagoona. There are three throughout regional NSW in South Nowra (2) anchored by Carpet Court, Beaumont Tiles and Central Storage and a brand new Shell Service Station in Tomago, and three in Queensland in Slacks Creek, Sippy Downs and Southport.
The various properties are listed through Colliers and will all go to public auction on Thursday 24th November, 2022 at 1:00pm at Colliers Sydney Office.
“It’s only early days, but it appears that investor demand remains resilient in response to the changing property market,” Colliers National Director Harry Bui said. “Investors are competing at the lower end of the property market and we are already seeing anecdotal evidence that this is creating a flow-on stimulus to the rest of the market as investors upgrade to bigger or better properties.”
“Strength of tenancy, length of the lease are risk factors and will come under close scrutiny from buyers. Multi-tenancy properties where risk can be spread, together with blue chip-leased properties, will become sought-after and this will be reflected in the yield and prices that will be achieved,” Harry Bui further added.
“The market for premium investments in Queensland including Service Stations, Fast Food, banks, childcare and medical practices with long lease terms and quality covenants remain tightly-held and highly sought-after by investors seeking security. The demand for premium assets in Brisbane and Gold Coast currently outweighs supply resulting in competitive bidding and continued yield compression,” Colliers National Director Hunter Higgins said.
The portfolio features an average WALE of four years and is the largest national premium investment offered by Colliers this year, with combined pricing of circa $80 million expected.
“Centrally located within a master-planned community and flanked by one of Australia’s largest operators of retirement living resorts, Ocean Family Medical Centre is a unique investment opportunity for the astute investor,” Daniel Vella, listing agent of the Sippy Downs property said.