A private investor has snapped up SUPA IGA Doonside, west of Blacktown, for $14.75 million at a yield of 6.1 per cent.
The freestanding supermarket was sold via an Expressions of Interest campaign led by Steven Lerche and Pat De Maria of Savills.
Mr Lerche noted that the property was an outstanding investment opportunity to purchase a large full line freestanding supermarket in metropolitan Sydney coupled with a rare net lease.
“The opportunity to secure a supermarket with both a net lease structure and built in rental growth is a rare prospect and therefore resulted in overwhelming interest from local, interstate and overseas investors. The EOI campaign resulted in over 10 competitive Expressions of Interest which were then shortlisted into a second and final round,” Mr Lerche said.
The initial EOI closed on the 9 December and after receiving second round offers the contract was exchanged on the 23 December 2015.
With a total GLA of 4,402.3 square metres, the centre is 100 per cent leased to a wholly owned subsidiary of ASX listed company, Metcash Limited, a leading wholesale and distribution company, expiring in 2024 with a 10 year option period. There are an additional four internal sub lease tenancies which complemented the offer.
The centre sits on a large site area of 15,300sqm with convenient on grade parking for approximately 224 vehicles.
Mr De Maria added, “This transaction is proof that freestanding assets with long leases in prime locations in any state remain highly sought after assets by the private investment market”
The property is strategically situated in Doonside, an established suburb located to the west of Blacktown, and only 40kms west of Sydney’s CBD. Within easy distance to the junction of the M4 Western Motorway and the M7 Westlink the centre allows for great connectivity to surrounding suburbs and beyond.
“The infrastructure planned for the Greater Western Sydney Region will result in a windfall for Doonside. With the release of designated development land throughout the North West corridor it will allow for further business and housing to be built for the area surrounding Doonside,” added Mr Lerche.