'Everyone wants to be around it': Shop in popular Eastwood mall sells for $7.25m
A shop on a busy suburban strip in north-western Sydney, offered to the market for the first time in more than 40 years, has sold at auction for $7.25 million after fierce bidding.
The 340-square-metre shop, on a 303.5-square-metre site at 159 Rowe Street, Eastwood, sold to a private investor from Sydney’s north shore, according to selling agent Victor Sheu, associate director of Ray White Commercial NSW – Western Sydney.
Mr Sheu said that the property had been incredibly popular because of the tightly held nature of the shopping strip near Eastwood train station.
“Eastwood, historically, has been an extremely sought after location and the hottest market is between the train station and the council car park on Lakeside Road – it’s very rare for a property to come up in that precinct,” he said.
The freehold property is opposite Yuhu Group’s planned $170 million redevelopment of Eastwood Shopping Centre and has two street frontages, to Rowe Street and Hillview Lane.
With 200 enquiries and about 60 contracts issued, interest came from local and overseas investors – with two buyers flying in to bid on the day – as well as owner-occupiers and “major corporate players” looking to move into the Eastwood retail market, Mr Sheu said. He estimated about 10 parties were bidding for the property.
Despite selling on a tight yield of less than 2 per cent, based on a net annual income of $143,077 (excluding statutory costs), Mr Shieu said the rental income was only slightly undervalued compared with the rest of the area.
With the current lease up for review next year, he said that there was potential to bring the rent in line with market values.
Mr Sheu said that he had anticipated a healthy appetite for the shop, which was being sold by a local family. But Eastwood’s relative immunity to worsening retail conditions and a pick up in investor appetite following successive rate cuts had led to the sale result exceeding expectations.
“There are very few markets where the retail trade is going to be as hot as Eastwood,” he said.
“Eastwood has attracted a very wealthy demographic of migrants. Everyone comes here to shop, and everyone wants to be around it.”
