Investor buys two neighbouring industrial properties on the Central Coast for $4.7m
The same investor has snapped up two neighbouring industrial properties in Woy Woy for a combined $4.7 million at auction, at a time when the NSW Central Coast is growing rapidly.
The properties were part of the Burgess Rawson Sydney portfolio auction on Tuesday that attracted a huge crowd of bidders and included the sale of several childcare centres, one of which set a record yield for the popular asset.
The adjoining Woy Woy properties sit on a bustling intersection and included a BP service station, a Repco store and welding business covering nearly 2000 square metres on one parcel that sold for $3.41 million. BP’s lease will come to an end in September 2020, while Repco’s lasts until 2019 with options to 2024.
The other 1700-square-metre industrial complex had five units and car parking and that sold for $1.31 million.
75-77 Rawson Road, Woy Woy, sold for $1.31 million at the Burgess Rawson auctions in Sydney. Photo: Supplied
Together the sites bring in almost $270,000 in net annual income.
“It’s an opportunity for developers and owner-occupiers to buy this property, sit back and cop the cash flow and look forward to a fair bit of growth in this amazing location,” said auctioneer David Scholes during the auction of the first property.
Burgess Rawson agent Darren Beehag said they were expecting the same buyer to snap up both properties. ”It’s a prime corner position on one of Woy Woy’s busiest roundabouts. And there are two nationals – BP and Repco – in occupation.”
He said the Central Coast’s commercial real estate was becoming increasingly popular, with its population set to grow to 422,000 by 2031.
“There’s a growth scene in that whole precinct,” Mr Beehag said.
More than 40 contracts were issued for each property.
Overall the Burgess Rawson Sydney portfolio auction saw a clearance rate of more than 70 per cent, said director Simon Staddon.
“I think the attendance today was about the most I’ve ever seen in one of our auction houses. It was packed.”
Included in the sales were a number of childcare centres with “incredibly low yields”.
One centre in Vaucluse sold on a yield of just 3.57 per cent, a new industry record, Mr Staddon said. The property, with a guaranteed lease through to 2030 to an ASX-listed company G8, sold for $4.425 million, with three further 10-year options to 2054.
In other sales a Caltex service station in Beresfield in NSW sold for $6.18 million, with a yield of just over 6 per cent.
