A WHOPPING 15 registered bidders battled it out at auction for the freehold of Lalor Park’s IGA as 52-54 Freeman Street sold for $3.63 million under the hammer to a private purchaser.
With a combined 745sq m* building area on a 758sq m* total site area, the property offered two separate titles and produced a net income of $141,172.35* plus GST per annum.
The asset was marketed and sold at auction on a net passing yield of 3.9 per cent by Ray White Commercial Western Sydney trio Jai Sethi, Peter Vines, and Victor Sheu.
“The campaign itself produced a huge amount of interest with 120 enquiries and 15 bidders registering to bid come the auction day,” Mr Sethi said.
“Supermarkets have been held in high regard since the beginning of the COVID-19 pandemic, with most investors overwhelmingly seeing the security of this asset class as not only essential, but the centrepiece of any community.
‘“Because of this, we believe that convenience-based retail is benefiting massively from the consumer not having to go into shopping centres.”
“There was strong interest from a diverse buyer pool including existing IGA owners, passive investors, and value-add buyers looking to take the advantage of this freestanding asset with development upside in one of the fastest growing areas of Blacktown City Council,” Mr Vines said.
“IGA has been a long-standing tenant here for over 17 years with an essential service business providing security to the purchaser in these uncertain times.”
“There was also the underlying development potential to increase the additional floor area or alternative development options – subject to council approval,” Mr Sheu said.
“Due to all these reasons and the scarcity of sub-$5 million investments with strong fundamentals, we’ve noticed fierce competition between buyers and this is resulting in lower yields.”