Property savvy friends are licking their lips after securing a high-yielding commercial site in Sydney’s south west.
A syndicate of investors placed the winning bid for the Mount Pritchard complex, which is anchored by Domino’s and Red Rooster and brings in a tasty annual net income of $337,524.
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They bought the site at 169-175 Meadows Rd for a combined $4.8 million during a public auction held on Thursday.
Colliers International Sydney’s national director of metro sales, Harry Bui, said the highly anticipated auction was short but sweet.
“We had five interested parties and three of them bid. It started with an opening bid of $4.6 million,” Mr Bui said.
“It sold to a team of local professionals, mostly doctors and pharmacists, who grouped together to buy it as a long-term investment,” he said.
Buying the complex, which has a weighted average lease expiry of seven years, was “a smart move”, according to the agent.
Along with the two fast food stores, the group now owns another four businesses. These include a kebab shop, Indian restaurant, beauty salon and a massage shop.
The 2006 sqm site is in a prime thoroughfare spot near Elizabeth Drive and next to a 7-Eleven service station.
It is also at the heart of the NSW Government’s south west growth corridor, expected to provide about 110,000 new homes over the next 30 years.
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CoreLogic records show the property last sold in 2015 for $4.5 million. In 2002, it changed hands for $2 million.
Mr Bui said the site proved to be a desirable asset during the marketing campaign.
“We had close to 70 inquiries — there was strong interest from interstate buyers as well as overseas buyers in Asia.”