North Bondi landmark site could fetch $20m as market thaws
A long-held North Bondi landmark site on the famous Campbell Parade, known to locals as Nio and Tony’s, is set to test the market with the development potential and ocean views tipped to be an attraction for investors.
Owned by grocers, brothers Nio and Tony Tsakirios, the site at 286 – 294a Campbell Parade will be sold in one line and includes four shops and six apartments. The corner freehold site covers 689 square metres and comes with a long term lease to the grocer.
Despite the lull in demand for property as the economy adjusts to the impacts of coronavirus, cashed-up investors are keen to buy bricks and mortar assets in the current low interest-rate environment.
With on-site inspections and auctions being reinstated, it is expected that sales will start to gain traction in the coming weeks in the lead-up to the end of the financial year.
Under the sale, the intention is for the grocer to remain along with all retail tenants, but flexible lease terms are in place that the selling agent say will appeal to both developers and investors.
Colliers International and McGrath Estate Agents have been appointed and say the deal will test the appetite of those looking to acquire a piece of Bondi beach.
“The property offers one of the largest land holdings we have seen come to market in Bondi and both the development potential and existing defensive income streams will attract international interest from developers and investors alike,” Colliers International’s national director investment services Miron Solomons and associate director Matt Pontey said.
“We have recently launched some exciting campaigns and have seen very promising enquiry both locally and offshore.”
Mr Solomons said the current income generated is $717,000 gross per annum and will be attractive to those investors seeking diverse and multiple income streams and “alternatively provide developers with substantial holding income whilst exploring the exciting development potential of the site”.
Reflecting the volatile markets due to the COVID-19 pandemic, CoreLogic’s latest research from Eastern Sydney Cityscope shows property sales’ values have increased in the past three months.
Sales recorded in the quarter to April 2020 totalled $115.8 million, an increase from the $74.9 million recorded in the quarter to January 2020, but a decrease from the $175.8 million recorded in the quarter to October 2019.
Mr Pontey said it is anticipated that potential buyers will take the long view on assets such as on the tightly-held and keenly sought-after Campbell Parade, “especially considering how rare this opportunity is”.
“We undoubtedly expect strong interest from off-shore groups as we have experienced across all our recent campaigns in this internationally renowned location,” Mr Pontey said.
William Manning of McGrath Estate Agents said it is a “blue chip asset in a world class location”.
“A stone’s throw from one of the world’s most iconic locations in a boutique village setting this asset should attract strong interest from high net-worth investors as well as institutions looking for trophy assets,” Mr Manning said.
