The intent of the sale is for the grocer to stay with all retail tenants, but flexible rental terms are in place that developers and investors say will appeal to developers.
Colliers International and McGrath Estate Agents have been appointed and say the deal will test the appetite of those looking to acquire a piece of Bondi Beach.
“The property offers one of the largest land properties we have seen coming to market in Bondi and the development potential and existing defensive revenue streams will attract international interest from developers and investors,” said Miron Solomons , National Director of Colliers International Investment Services, and Associate Director. Said Mark Pontey.
“We have recently launched some exciting campaigns and have seen a very promising survey both locally and abroad.”
Solomons said the current revenue generated is $ 717,000 gross per year and would be attractive to investors looking for diverse and multiple sources of income and “provide developers with substantial holding income while exploring the potential of exciting site development “.
Reflecting market volatility due to the COVID-19 pandemic, CoreLogic’s latest research on the urban landscape of eastern Sydney shows that property sales values have increased in the past three months.
Sales recorded for the quarter to April 2020 totaled $ 115.8 million, an increase from the $ 74.9 million recorded in the quarter to January 2020, but a decrease from the $ 175.8 million dollars recorded during the quarter until October 2019.
Pontey said it is expected that potential buyers will have a long-term view on assets such as the Campbell Parade, well-kept and highly sought after, “especially given the scarcity of this opportunity.”
“We are undoubtedly expecting keen interest from off-shore groups as we have experienced in all of our recent campaigns in this internationally renowned location,” said Mr. Pontey.
William Manning of McGrath Estate Agents said it was “a great asset in a world class location”.
“A stone’s throw from one of the most iconic locations in the world in a boutique village, this asset is expected to generate strong interest from wealthy investors as well as institutions looking for trophy assets,” said M Manning.
Carolyn Cummins is the editor of commercial properties for the Sydney Morning Herald.