Investors are expected to swoop on a retail building at Auburn, which is part of Sydney’s Parramatta Road revitalisation precinct and tipped to reap the developers about $20 million.
Located at 219 Parramatta Road, Auburn, it is a 7962-square-metre, four-level bulky goods retail complex comprising 15 strata-titled retail lots, allowing for future sell-down if required. There also are 90 basement car spaces.
According to the agents at Colliers International, the site is located in what is described as the “largest bulky goods retail precinct in Sydney”.
Sydney’s west is undergoing a transformation with new transport, office towers and a growing population. New homes being are providing high demand for large format retailers who sell homewares, furniture and white goods.
The arrival of Amazon will increase demand for sites near high-density areas.
The national director Sydney metro sales and investment services at Colliers International, John McCann, said the property was leased to 15 tenants with a yearly rental income of $1.36 million, returning about 5.5 per cent per annum
“There is strong appetite for prime-grade investment stock in Parramatta, which remains in short supply, and therefore we are anticipating a lot of interest in the Parramatta investment market from long-time investors,” Mr McCann said.
“This building is in an outstanding position, close to the busy intersections of Great Western Highway and Silverwater Road, ensuring maximum exposure and access to passing vehicle and foot traffic, and directly opposite the Harvey Norman flagship Auburn superstore, Nick Scali and Damir Leather.”
The director of property sales and leasing at Colliers International, Trent Gallagher, said it was “a retail landmark” building, located within the commercial precinct in Auburn, providing the opportunity for investors to secure a modern, retail complex over three levels with basement parking”.
“This investment is perfectly positioned to take advantage of the Parramatta Road rejuvenation, where the government will spend $123 million on neighbourhood upgrades such as hectares of open space, bigger parks, urban plazas and new cycling area,” Mr Gallagher said.
There are 32 projects under the program, including new or extended parks in Auburn and Five Dock, new cycling connections to Pyrmont Bridge Road, and the construction of an open plaza in Parramatta.
In Sydney’s south-west at Minto, demand is rising for car storage and transport due to its strategic location, which is benefiting landlords in the area and causing existing warehouse and pre-lease rents in the area to rise.
Colliers International recently signed two leases, 89,813 sq m of land, office/warehouse and hail netting for car storage and preparation for delivery to their Sydney car dealerships for Mazda and 53,082 sq m for car storage and transport for CEVA Logistics auto division.
Adrian Balderston, director of industrial at Colliers International, said Minto was strategically halfway from Port Botany to Sydney’s CBD. Previously, cars used to unload at White Bay and that was moved to Port Kembla a few years ago.
Maria Agostino, senior executive of industrial at Colliers International, said location continued to play a major factor for logistic companies and with Macarthur Intermodal at capacity and Moorebank Intermodal construction under way, Minto and Ingleburn were providing these companies with what they needed into the future.