Chinese investors buy and sell $8.41m of foodie property at auction

The home of popular eatery Porteno, at 358-632 Cleveland Street, Surry Hills, sold for $6,660,000 with a yield of 5.36 per cent. Andy Hu and Linda Zhu, Knight Frank associate directors, Asian markets, managed the sale.

Shop 2, 438-448 Anzac Parade, Kingsford, which is tenanted by established retail chain Yogurberry, sold $1,750,000 on a yield of 4.75 per cent with the sale managed by Mr Hu.

The Surry Hills property has an internal area of 750 square metres over a ground and mezzanine level.

Tenant Porteno has been placed regularly on the Gourmet Traveller national top 50 restaurants list and has won numerous awards including The Sydney Morning Herald Chef of the Year in 2013 and Gourmet Traveller’s Best New Restaurant in 2011.

The eatery, which also received “two hats” ratings in The Sydney Morning Herald Good Food Guide 2012, 2013, 2015 and 2016, has a lease until 2020 with a further five-year option.

Ms Zhu said both properties were purchased and sold by Chinese investors and vendors and both with sharp yields. The high-profile tenancy of Porteno was a big investment drawcard.

“Given the current record-low interest rates in Australia, buyers are always in the market for solid investments,” she said.

“Surry Hills is a growth area at the fringe of the Sydney CBD and a good investment location. In addition, zoning allows for future flexible upsides over the long term.”

Mr Hu said properties such as Cleveland Street, which is close to the planned Surry Hills light rail station, did not come up for sale often.

“The property has three street frontages to Cleveland Street, Riley Street and Goodlet Lane, so has a prominent visual presence,” he said.

“Surry Hills is historically a tightly held market so this was a great find for the buyer.”

The property leased by Yogurberry on Anzac Parade, Kingsford, comprises a ground-floor, 138-square-metre tenancy plus two underground, secure car spaces. It is located near the University of NSW.