Cushman & Wakefield has today announced that a local investor has purchased the two-storey freehold building located at 32 The Corso, Manly, for just over $20 million. The sale price represents a yield of 4.92%.
Manly, Sydney. By Aleksandar Todorovic
Manly is host to more than 8 million visitors each year, and the property enjoys significant exposure to one of its main pedestrian thoroughfares. The property occupies a net lettable area of 815 sqm set over two levels and is currently leased to Westpac Banking Corporation until 2024 with an option to extend to 2044.
Cushman & Wakefield’s Ryan Cross and Aaron McLean brokered the sale in conjunction with Patrick Kelleher from Pine Property. The expressions of interest campaign generated almost 300 enquiries and 13 offers, with significant interest from private high net worth investors from both interstate and overseas.
The transaction follows other recent sales along The Corso including the Hotel Steyne recently selling for a reported mid-$60 million amount.
Commenting on the sale, Cushman & Wakefield’s Ryan Cross, said: “We are delighted to achieve a fantastic sale price on behalf of the vendors of 32 The Corso following significant investor demand. The property was purchased by a local doctor who outbid a range of local, interstate and international investors to acquire the property.”
“Properties along the Corso only rarely come up for sale, and not only were investors attracted to its highly coveted location, but the potential cash flows from a long-term, high quality tenant. This demand is even stronger at present given the lower bond yield environment is fueling the search for yield,” Mr Cross said.
Aaron McLean said: “Achieving net yields of sub 5% in the current market, even for asset sales up to $20 million, demonstrates that the strength of confidence in Sydney’s commercial property market is very healthy.”
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