Three neighbouring commercial properties on Drummoyne’s Victoria Road sell in one line

21 June 2024

Three neighbouring commercial freehold buildings commanding a prime corner position on Sydney’s iconic Victoria Road at Drummoyne have been sold in one line.

The properties at 66 – 72 Victoria Road in Sydney’s inner west occupy a total 961sq m with two street frontages – Victoria Road and Day Street – and have future development potential with views over the Parramatta River and Sydney Harbour.

A mix of local retail and office premises currently occupy the buildings, with Concept Lighting and Concordia Legal amongst a range of other occupants.

The three freeholds were sold by Yazzy Ptd Ltd to an offshore private high net worth investor, in an off-market deal negotiated by Knight Frank’s James Masselos, Anthony Pirrottina, Demi Carigliano and Harrison Burcher, with buyers’ agency Costi Cohen representing the buyer.

They were purchased for a price in excess of $7.5 million on a sharp gross yield reflecting 3.85%, with the properties generating circa $291,000 of gross income per year.

Mr. Masselos said the three properties offered a great investment, with one of the big drawcards being their location on Sydney’s iconic Victoria Road.

“They are in a high-exposure location, with the large block having two-street frontages, one of which is a main road with plenty of passing traffic every day,” he said.

“The properties offer solid holding income, with significant future mixed-use development potential.

“The zoning in the area is B4 Mixed-use, with a 12-metre height limit, so there is significant opportunity to develop a premium mixed-use development within close proximity of the Sydney CBD and Birkin Head Shopping centre.”

Mr. Pirrottina said demand for commercial investments underpinned by future development upside remained strong in the current market.

“Purchasers are looking to secure assets that generate an income in the immediate term, whilst bolstering their development pipeline for the next 10 years,” he said.