In the second time that the platinum retail asset has traded in as many years, The Huang family has sold the iconic ‘Buckley’s Bar’ site on the waterfront at Circular Quay to a Macao based investor for $25.1m, representing a net yield of 3.5%.
Cushman & Wakefield’s Department Head, Sales & Investments, Anthony Bray, and Director, Ryan Cross, exclusively managed the expressions of interest sale process on behalf of The Huang family after having facilitated its purchase in mid-2017 for $21.5m on a 4% yield.
The property, one of only a small number of food and beverage retail sites situated along Circular Quay, is located at 7 Macquarie Street, East Circular Quay, and positioned on the Sydney Harbour waterfront promenade at Opera Quays. The retail lot will continue to be occupied by lessee Management International Group, trading as bar and restaurant, Buckley’s Craft Beer Bar with an annual net rent of approximately $880,631 plus GST with a lease term of 15 years to 30 April 2029.
The strata titled property has a total net lease area of 408 sqm, including 256 sqm of Quayside Promenade and is approved to host between 350 and 500 patrons with an outdoor seating licence for 56 guests. In addition, the site comprises a 137 sqm mezzanine level and a 15 sqm basement providing for storage.
Anthony Bray said: “The sale process was fiercely competitive, particularly amongst offshore investors seeking to secure a trophy asset within the iconic and tightly held Opera Quays mixed use precinct. Having held the asset for just over two years, the significant increase in value delivered an outstanding outcome for the vendor.”
Ryan Cross said: “Not only did the limited availability of retail sites along Circular Quay drive investor interest during the sale process, but we saw strong demand given the retail site benefits from millions of tourist visitors to the precinct each year.”
“We are still seeing sites like Buckley’s Bar in premiere locations and with consistently high footfall experience significant increases in value, despite many retail asset valuations coming under pressure. This uplift was even further supported by the ongoing development activity in and around Circular Quay including Quay Quarter and Opera
Residences, that are expected to be completed by 2021,” Mr Cross added.
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