Colliers secures premium result for CBA-anchored retail investment, attracting offshore capital and setting a new benchmark in Sydney’s multicultural heartland.
In a landmark transaction for Sydney’s tightly held south-west retail market, Colliers has sold a generational trophy asset at 38 John Street, Cabramatta for $31.3 million, setting a new benchmark for the precinct.
The prominent double-storey commercial building, which has been the largest branch of The Commonwealth Bank of Australia (CBA) in New South Wales for over 50 years, was acquired by an Asian investor following a highly competitive international expressions of interest campaign led by Harry Bui and Andrew Bui of Colliers.
The property features a rare 10-year lease with options to 2043, underpinned by a multi-million-dollar refurbishment completed in December 2023. Located just 200 metres from Cabramatta railway station, the asset sits in the heart of one of Sydney’s most vibrant multicultural retail and dining destinations, which attracts over 15,000 weekend visitors.
The campaign attracted over 300 enquiries from a diverse buyer pool including local private investors, high-net-worth Asian investors, property syndicates, and new entrant offshore capital from South East Asia countries such as Vietnam and Thailand.
Harry Bui Bui, Head of Asia Markets, Australia, commented, “We tailored our campaign to resonate with high-net-worth Asian investors and overseas buyers who value the defensive nature of bank-leased assets. By leveraging Colliers’ global capital platform, we introduced a new entrant from Vietnam and interstate Asian investor who secured the asset at a record land rate of circa $36,000 per square metre above local market offers, a result that far exceeded expectations.”
Andrew Bui, Manager of Asia Markets, Australia said, “This is a once-in-a-generation opportunity to secure a blue-chip investment in one of Sydney’s most tightly held retail strips. The combination of a long-term lease to Australia’s largest bank, a prime John Street location, and recent capital upgrades made this asset incredibly appealing to a wide range of investors.”
The sale reflects a record tight 3.4% yield at this middle market transaction size underscoring the strength of demand for secure, income-producing assets in growth corridors like Cabramatta.
“Bank-leased assets continue to prove their resilience and long-term value. Their essential service positioning and high-end fit-outs make them a safe haven for capital, particularly in uncertain markets,” added Andrew Bui.
With over $16 billion in government infrastructure projects underway across Western Sydney, including the Western Sydney Airport, Sydney Metro Southwest, and Liverpool Hospital upgrades, Cabramatta is poised for continued growth and investor interest.
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