Circular Quay retail asset sets new Australian psqm rate record

THE $5 million plus GST sale of Circular Quay retail assets has set a new psqm rate record for Australia as Lots 3&4, 1A Macquarie Street, Sydney sold via private treaty.

The two retail shops which have been leased to the same tenant for 20 years are next to the internationally recognised Sydney Opera House and have an outlook towards Sydney Harbour Bridge.

The assets offered a 44sq m* tenancy area (one lot 26sq m* and one 18sq m*) and were marketed and sold by Andrew Vines from Ray White Commercial Asian Investment Services.

“The properties generated a huge amount of interest during the campaign with more than 100 enquiries coming from both private investors and potential owner occupiers,” Mr Vines said.

“The assets are suitable for all types of retail – subject to council approval – and the eventual buyer was a local private investor with extensive knowledge of the area.

“They had confidence that the area will soon return to being a booming area with the arrival of the global Wahlburgers by Mark Wahlberg, who will open in the area soon.

“This really was a once-in-a-lifetime opportunity to purchase a blue-chip piece of commercial property in the world-famous Opera House precinct.

“The Sydney CBD has been very badly affected by COVID-19 and the various restrictions to retailers and small business owners.

“Super prime retail opportunities that have been tightly held are suddenly becoming available – landlords who swore they will never sell are genuinely open to cashing up and finding a more secure return on their investment.

“Bargain hunters think they can bag a bargain and are very wrong, and there are high net worth investors and syndicates who are entering the market to buy up super prime opportunities, which would never otherwise exist without the once in a hundred year effect that COVID-19 had on the entire global economy.

“I’m expecting the year ahead to be very busy with buyers/tenants wanting to secure income-generating properties moving into the market as a result of the opportunities being created.”

*Approximately.