Century-old Bowral shop sells for $2.88 million under the hammer
A retail property in the NSW southern highlands town of Bowral fetched $2.88 million at auction on Tuesday, after being listed for the first time in almost a century.
The freehold property at 313-317 Bong Bong Street on 470 square metres sold on a yield of 4.1 per cent.
It was one of 12 assets to go under the hammer at Burgess Rawson’s Sydney portfolio auction, which recorded a clearance rate of 62 per cent on the day.
Currently leased to a newsagency until April 2018, the shop attracted 90 inquiries from buyers and more than 30 contract requests.
The retail property is located on the high street. Photo: Supplied.
Burgess and Rawson sales agent Sam Horwitz, who had the listing with Simon Staddon, said the three siblings who owned the property decided to tap into the positive market conditions by selling now.
“In light of the strength and growth of the Bowral market, they decided it was time to put the property on the market,” he said.
With an opening bid of $2.4 million, the property was eventually bought by a retailer who will consider all options after the lease ends next year.
The property is leased to a newsagency until early next year. Photo: Supplied
“They will talk to the existing tenants, or they do have the option to potentially move a retail premises in there,” the agent said.
“It did have a good mix of local investors, developers and it did appeal to a broad spectrum.”
A Red Rooster restaurant in Mount Annan, in south-west Sydney, was the first property to sell under the hammer on Tuesday for $3,615,000 on a 3.96-per-cent yield. About 150 buyers made inquiries on the listing and the agents issued more than 50 contracts.
Three properties passed in and two are under negotiation.
Price guides for the assets started from about $1 million to more than $7 million.
“The real story here is that a fast food (retailer) in the Campbelltown area sold for (a yield of) 3.96 per cent and there were three other high-street retail sales from 4.10 per cent to 6.65 per cent, which indicates a strong desire for investors to own these properties,” a Burgess Rawson spokesperson said.
