Investors are on the hunt for higher-yielding assets, with an array of development sites worth more than $100 million in the market to catch the cashed-up sector.
One of the latest deals was by a private investor who paid $10 million for the 1009.3 sq m freehold commercial building at 2A Phoenix Street, Lane Cove, from PHFB Investments Pty Ltd on a 5.19 per cent yield.
Andy Hu and Jordan Lee of Savills Australia negotiated the sale, saying local investors as well as offshore groups from Hong Kong, Malaysia and Singapore have recorded strong interest in what little stock is currently for sale.
Next month, the Tavakoli family are hoping to capitalise on this recent sale when they offer ‘Rosenthal Arcade’ at 79-83 Longueville Road, Lane Cove, through Stuart Cox, Johnathon Broome, Mr Hu and Mr Lee of Savills Australia.
The existing asset is made up of 467.30 sq m of ground floor retail area across nine shops and 1221.80 sq m of commercial area across 11 suites over two upper levels, with price expectations of about $14 million.
“With interest already around the $14 million mark, we expect the on-market campaign to generate a significant amount of buzz in the area, as local and offshore investors, developers and self-managed super funds (SMSFs) look to add value by either re-letting or refurbishing the existing asset or redeveloping it to further capitalise on the recent redevelopment in the surrounding village,” Mr Broome said.
The agents are also selling the long-standing Australia Post building at 64 Spit Road, Mosman. The property will be leased back by Australia Post Group on a two-year term from settlement plus a two-year option.
In Sydney’s west, Jonathan Henry, Barry Kogan, Jason Ireland, and Jason Preston of McGrathNicol as Receivers and Managers of Persephone Company Pty Ltd, which trades as Dyldam, are selling three development approved sites.
The St Marys, Fairfield, and Schofields assets are being offered in one line worth $60 million, or as individual sales through Ray White Commercial’s Peter Vines and Jeff Moxham and CBRE’s Scott Gray-Spencer and Ben Wicks.