Photo: Cardiff car dealership property at 2-14 Sturt Road (SMH)
Regional cities are the new target for investors
Regional property markets are giving the metropolitan areas some strong competition as the investment dollar looks to capitalise on the sprawling population growth.
In Newcastle, one of the biggest cities in NSW, two assets have sold for a total $20.21 million.
They are multi-car dealerships and located in Newcastle and Cardiff, and were sold in one line to a private investor by JLL’s regional director of sales and investments, NSW John Macree and senior negotiator, sales and investments, NSW Dylan McEvoy. The vendor was Associated Finance Pty Ltd.
The strong demand for regional bulky good centres, which is driven by the housing boom, will be also tested with the pending sale of the West Gosford Hometown centre.
The private syndicate owners declined to comment on the price, but similar assets have reached about $36 million, or a yield of about 8 per cent.
The single level homemaker centre of 16,000 square metres is being sold through Savills director, Steve Lerche, and Colliers International director James Wilson.
According to Macree, strong interest for the Newcastle properties was received from a number of interstate property syndicates and boutique fund managers.
The buyers were attracted to the secured long-term income stream, quality of the underlying real estate as well as the strong market outlook for Newcastle.
“A lack of opportunities in the major capital cities resulted in strong bidding from Sydney and interstate investors,” Macree said.
Read the full story by Carolyn Cummins, Sydney Morning Herald, 3 October 2014.
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