Major auction event sees retail offering sell for over double the reserve

The event was headlined by the $5.625 million sale of a retail building in Eastwood.

Sydney, 24th June – Colliers have successfully transacted three properties for a total of $13.5 million at an action-packed auction event, with one selling over double the reserve price.

The Investment Services Auction Day held in Sydney was a major success, achieving a clearance rate of 75 per cent in front of a crowded room, with the highlight the $5.625 million sale of a retail offering at 245 Rowe Street in Eastwood with a passing yield of 1.25 per cent and capital value of $24,038 per square metre of site area.

With 30 people in attendance and 10 registered bidders, the 234sqm double-storey freehold retail investment sold 125 per cent above the reserve price with 105 bids in total.

It was sold by Head of Asia Markets Australia, Harry Bui and Senior Executive, Andrew Bui of Colliers, to a local private Asian investor. 

“Despite market conditions, properties located in thriving suburbs remain sought-after, with Asian investors both local and offshore willing to pay a premium to secure these generational investment assets,” Mr Harry Bui said.

Retail Premium Investments have been highly sought after in 2024 and are the number one asset class transacted over the past three years. Of all Premium Investment sales so far in 2024, 32.4 per cent have come in the retail sector, totaling approximately $170 million.

The Colliers Investment Services team also sold an ANZ located at 230 Beamish Street, Campsie for $5.8 million to a local Asian investor, with 65 bids and a sale price 38 per cent above the reserve price.

“The Colliers Australian Asia Markets team is currently managing various existing investment mandates of circa AUD$2 billion, which my team and I have uncovered from our most recent Asia Markets Roadshow trip was conducted in the first week of June 2024. These auction sales are further evidence of the high demand that currently exists for assets with strong market fundamentals,” Mr Harry Bui added.

Another successful sale was achieved by Colliers Associate Director Joe Sacco and Manager Gracian Marando in Griffith. 172-174 Banna Avenue, underpinned by St George Bank, sold for $2.0635 million at a 4.05% net passing yield. The property attracted five bidders and sold to a local investor with 16 total bids.

Surrounded by a mix of shops, restaurants and offices, the property is a prime retail and commercial investment with value-add opportunities for a significant increase in rental income.

 “We saw significant interest from both local and Sydney investors looking for a passive investment that is anchored by a strong covenant. One of the largest land holdings in the main strip of Banna Avenue, the property sold for the first time in 40 years,” Mr Marando said.