A 43 sqm shop in Sydney has sold for $5.7 million, setting for a new national retail record of $132,558 per sqm.
The shop, located at lot 11, 1A Macquarie Street in Circular Quay, was leased to international tea giant Coco and had a waterfront location across the Opera Quays boulevard.
The sale smashed the previous record by about $20,000 per sqm.
The property was sold alongside Lot 54 – an 186sqm waterfront office suite – for a combined $9.76 million.
Colliers National Director of Asia Markets Joseph Lin and Senior Executive of Investment Services Angus Windred sold the property in conjunction with Plus Agency’s Peter Li.
“Amongst the synonymous global brand, the desirable world-famous harbour location generated an enormous amount of interest during the campaign with more than 150 enquiries coming from both private local and offshore Asian investors as well as potential longer term owner occupiers,” Lin said.
“Lot 11, being only one of a few ‘wet shops’ across Opera Quays, provided the once in a lifetime opportunity to purchase a versatile super prime retail asset, with local confidence rising in the anticipation and return of international tourism,” Windred said.
The Sydney retail transaction comes after Singapore-based investment manager Firmus Capital sold a neighbourhood shopping centre in Sydney to a private investor for $37.5 million last month, selling for a record 3.75% yield.
Other NSW deals include a Charter Hall fund’s purchase of a Bunnings warehouse in Nowra on the south coast of New South Wales for $65.3 million last week, reflecting an initial passing yield of 4%.
Last December, Centuria subsidiary Primewest bought a Woolworths-anchored retail centre under construction in Sydney from Fridcorp for $41.5 million, while the AMP Capital Shopping Centre Fund (ASCF) acquired a 25 per cent stake in Sydney’s Macquarie Centre for $422.5 million.
In November 2021, Hong Kong-listed Link REIT bought a 50% stake in three retail properties in Sydney from Singapore’s sovereign wealth fund GIC for $538.2 million, as CIP Asset Management sold a 50% stake in the Roselands shopping centre in Sydney to JY Group for $167 million.
Interested in the retail market? Take a look back at Australia’s biggest single retail sales in 2021.