Home of Bowral restaurant Biota in developers' sights
A Southern Highlands property currently home to one of the region’s most awarded restaurants is set to headline Burgess Rawson’s August portfolio auction on Tuesday, August 6.
But its the property’s future development potential, rather than its culinary reputation, that is so far whipping up interest from potential buyers.
The property, at 18 Kangaloon Road, Bowral, is currently leased to Viles Group – the father-and-son operation behind the two-hatted restaurant Biota.
Listing agent Kieran Bourke said that they had been operating from the site since late 2010 and had two options remaining on the lease to 2030.
Another Viles Group restaurant – Bertha’s Meats – as well as 12 rooms of accommodation also operate from the property.
Mr Bourke said that the property was a rare chance to secure a long-term tenant near the tightly held Bong Bong Street precinct, with Biota enjoying a strong reputation with both local and visiting diners.
But a trend towards apartment and townhouse living in the Bowral area, as shown by the new developments surrounding the 6042-square-metre site, had put the property on the radar of developers, from the Southen Highlands and from Sydney.
The property is ”probably worth more as a development”, Mr Bourke admitted.
“You’ve got locals who live in Bowral and the Southern Highlands, we always get a spike of interest there when we have a Southern Highlands listing as there’s a lot of wealth there. And we’ve had a lot of people in Sydney enquire, because Bowral is just an hour away,” he said.
The listing states that up to 36 dwellings could potentially be built on the site, subject to council approval.
The property is currently generating $298,555 a year (plus GST) in net income.
Mr Bourke wouldn’t be drawn on price expectations for the property.
Childcare centres back in demand
Childcare centres are also expected to be a hit at the auction, according to Burgess Rawson agents, having overcome an oversupply in the sector during 2018.
Two centres in Sydney that are set to go under the hammer have received more than 100 inquiries, according to agent Michael Vanstone.
Both assets – a new purpose-built facility at The Ponds, Kellyville, and a 58-place centre in Auburn – are fully occupied and come with new 20-year leases.
“Childcare investments move to the top of the class again with enquiry dominated by educated buyers seeking favourable yields in anticipation of competition, driven by the expectation of lower interest rates,” Mr Vanstone said.
The Auburn centre, leased to Oz Education, is currently generating $223,300 a year (plus GST) in net income.
The 43-place Kellyville centre is currently generating $185,000 a year (plus GST) and features rare 4 per cent annual rent increases as part of its lease.
In total 16 commercial properties will be going under the hammer at the auction, which will commence from 11am at Sydney’s Doltone House.
