Strathfield arcade built by John Symond's father sells for more than $30m
A block of shops and offices in Strathfield, in Sydney’s inner west, with a connection to one of city’s richest men has been snapped up before auction for more than $5 million above its reserve price.
Symond Arcade, on Churchill Street, named after the father of Aussie Home loans founder John Symond – who built it – has sold to a private investor for more than $30 million.
The arcade is located directly next to Strathfield Plaza. Photo: Supplied
The block of 12 shops and 14 offices next to Strathfield Plaza had been scheduled to go to auction on Tuesday, but was pulled at the last minute when the Freyer family accepted an offer – understood to be well over the $25 million reserve price.
“They made an offer before the auction that was in excess of the reserve, and the reserve was $25 million, so it sold far in excess of that, so the owners were happy,” listing agent Robert Pignataro of Strathfield Partners said.
Mr Pignataro said the 3 per cent yield represented by the sale price was typical of yields in the Strathfield area, where retail investments were usually between 3 and 4 per cent.
The property currently has a net rental income of about $918,691, with tenants responsible for all outgoings.
According to Mr Pignataro, the new owners plan on retaining the current arcade structure, treating the investment, zoned B3 commercial core, as a “buy and hold”. The property had been marketed as having future development potential subject to council approval.
Strathfield has been subject to extensive residential development in recent years, with numerous apartment projects taking shape in the suburb alongside larger houses. The suburb recorded its highest house sale in September, an eight bedroom mansion, which fetched $7.3 million.
Inside the arcade, which houses shops downstairs and offices upstairs. Photo: Supplied
Mr Pignataro said that inquiry on the arcade had been phenomenal.
“Seventy eight people viewed (it), there were seven specific contracts drawn up for seven potential buyers, and (we were receiving) about 50 calls a day realistically,” he said.
The arcade stands on a 645-square-metre block across the road from the Strathfield train station.
Property records show the Freyer family purchased it in 1994 for $1.9 million.
Mr Symond credits his working-class upbringing for playing a large role in his later business success.
“I went to 11 schools and that was because my parents were in the fruit business. They opened up a little fruit shop and every 12 months or so move on after building it up and making a profit,” he said a few years ago.
