The site of Auburn Centrelink has changed hands for the first time since it was constructed in the 1980s, with a $13.06 million sale that sets a new record yield in western Sydney.
An investor based in the area purchased the recently-refurbished 5-9 Macquarie Road, a prominent 1,870sqm property in the heart of Auburn, in a competitive auction.
The sale of Auburn Centrelink reflects a passing yield of 2.69 per cent, a new benchmark for $10m-plus assets in western Sydney, on a Commonwealth Government lease that runs to December 2026 with two three-year options and annual net income of $331,170.
Originally a Westpac cheque-clearing centre, the 1,104sqm single-level office has basement parking for 40 cars and is within walking distance of Auburn station and Auburn Central Shopping Centre.
CBRE’s Robert Dowdy managed the sale campaign on behalf of the Queensland-based family that had owned the property since its construction.
“The yield of 2.69% is a new record for $10-million-plus properties in western Sydney, and on par with the sorts of yields we’re seeing in the eastern suburbs at the moment,” Mr Dowdy said.
“We were anticipating a yield of around 5%, but the result exceeded all expectations in further proof western Sydney is on the map for buyers seeking investment opportunities.
“The asset’s central location in Auburn, proximity to Parramatta, blue-chip Government lease and potential development upside drove strong interest, and the local buyer beat competition from parties based in Sydney’s eastern suburbs and north shore, interstate and overseas.”
More than 100 bids were lodged during the auction across 15 registered bidders, spanning investors, owner occupiers and developers.
The property’s B4 Mixed-Use zoning provides for a 5:1 floor space ratio that would permit a building height of 38 metres or 10 levels, subject to the relevant council planning approvals.
It comes as Sydney-based food packaging supplier Pinnacle Packaging has selected a site in Altona for its first distribution facility in Melbourne.
Focused on sustainable takeaway food solutions, the company has signed a five-year lease for 14 Marshall Court, for a net annual rent of $320,000+GST and outgoings.
The 6,340sqm property has a 3,959sqm warehouse and expansive, 818sqm loading canopy.
The high-clearance warehouse incorporates two levels of office space and has two on-grade roller shutter doors.
Within Melbourne’s south west, Marshall Court is just off the Princes Freeway.
CBRE’s Fergus Pragnell, Tom Murphy and Ricardo Cappelletti secured the tenancy on behalf of the landlord, J and M Investments.
“Pinnacle Packaging is one of Australia’s largest suppliers of food packaging products, with an emphasis on sustainable packaging materials,” Mr Pragnell said.
“Alongside its base in Sydney, this new depot will allow the company to hold more stock for its customers in Melbourne.”
