Bank building sells at more than $2.4 million

A bank building on Blackwall Rd, Woy Woy, has been sold for more than $2.4 million.

A NSW bought the National Australia Bank asset for $2,422,000, for a rental yield of six per cent, at a Sydney portfolio auction.

Agents Burgess Rawson received more 85 enquiries and 25 contract requests prior to the property's sale at auction.

The building sold above expectations following heated competition from multiple bidders, according to selling agent Mr Sam Horwitz.

Mr Horwitz said the property's highly exposed corner position, the Central Coast region's growth location and quality of the anchor tenant, were contributing factors that drove high investor demand and a premium result.

"This property certainly attracted strong competition at auction, with a buyer mix comprised of local developers and investors seeking to initially earn passive income and then potentially renovate the property, as well as Sydney and regional buyers keen to invest in the asset as a strong passive income," Mr Horwitz said.

Fellow selling agent Mr Darren Beehag said buyer interest was unanimously driven by the prestige National Australia Bank covenant, combined with the benefit of extra rental from the first floor tenancies to provide a diverse and predictable income stream for the asset's investor.

"With the property's tenant an ASX Top 10 company and a household name for Australians, it came as no surprise that investors saw huge value in this property as a fantastic opportunity to enter or strengthen their portfolio in the banking commercial real estate sector," Mr Beehag said.

"The new buyer was very pleased to have acquired such a prime landholding in a key retail strip with close proximity to the local Woolworths and train station," he added.

For one of the under bidders at auction, the property's appeal was multi-faceted.

"The three things I liked about this property was having a bank as the anchor tenant which gave me comfort there would be minimal problems.

"The second feature of appeal was the proximity to the water as I can see this will facilitate population growth in the area, and finally, the two-minute walk to the train station which will no doubt ensure pedestrian flow," they said.

Mr Horwitz said Woy Woy was one of NSW's highest growth regions, with this two-story Blackwall Rd property ideally located on a highly sought after corner site, boasting double shop frontage onto Woy Woy's busiest retail street.

Currently tenanted to NAB until 2020, plus options to 2026, the property provided the new buyer a net income of $145,559pa plus GST and had development potential.

Burgess Rawson did not name the new owner of the building.

SOURCE:

Media release, 17 May 2018

Lexy Haggard, P4 Group