Bubble tea shop fetches retail record of $132,000 per square metre
A bubble tea and juice shop at Sydney’s Circular Quay has sold for a record-breaking $132,000 per square metre – a mark the selling agent predicts will be exceeded when the adjoining premises in the exclusive strip goes to auction in March.
The sale broke the existing Australian retail price record of $113,000 per square metre, set last year by a third property in the tightly held Opera Quays retail strip, just 200 metres from the Sydney Opera House.
Colliers agent Joseph Lin, national director of Asia markets, said there was intense interest in the 43sq m asset – Lot 11 at 1A Macquarie Street – with more than 150 inquiries before it sold to a local Chinese investor.
Mr Lin said many of those inquiries came from overseas buyers, mostly Asian, who were hampered by travel restrictions, could not inspect and did not move quickly enough to secure the property, bought for $5.7 million.
Leased for the next four years to international operator CoCo Fresh Tea & Juice, the shop rents for $300,000 a year and was bought on a yield of about 5.25 per cent.
The property was sold as a package with a 186sq m office in the same complex that fetched $4 million.
“I got a lot of inquiries from overseas buyers who weren’t able to act quickly, but now the border’s open we’re expecting there’ll be a lot more overseas buyers coming in and buying premium investments here in Australia,” Mr Lin said.
The location and tenant were key factors in the high level of interest despite uncertainty surrounding retail investments when it went to market late last year.
“It’s probably one of the best locations you can get in Australia and a unique offering with an international branded tenant, very strong covenant, and a return better than it would have been before COVID,” Mr Lin said.
Retail properties in Opera Quays are scarce and the previous Australian record retail sale, on a per square metre basis, was for a 44sq m shop on Lots three and four of the same complex that sold for $5 million in early 2021.
After the strong result for Lot 10, and improving retail conditions, the owner of Lot 11 next door has also decided to sell through Mr Lin, his colleague Angus Windred and Peter Li, from the Plus Agency.
Now that borders are open and COVID-19 restrictions have eased, Mr Lin is confident Lot 11, home to the Guylian Belgian Chocolate Cafe, will attract a higher price per square metre.
“We’ll be seeing a lot more international buyers coming back to Australia, and they are hungry for good stock,” he said.
In 2021, Colliers sold $115 million of retail and strata property in Sydney, 47 per of which was bought by Asian investors.
