Auburn Centrelink secures record yield with $13.06 million deal
An investor has seized the unique opportunity to own their own Centrelink in western Sydney.
The local buyer paid $13.06 million at competitive auction against 14 other bidders to become the new owner of Auburn Centrelink on Macquarie Rd.
The sale price is also thought to have set a new yield benchmark in western Sydney of 2.69 per cent for assets over $10 million.
CBRE sales agent Robert Dowdy said the $13.06 million sale price and yield was far better than what they had initially expected the property to sell for.
“The yield of 2.69 per cent is on par with the sorts of yields we’re seeing in the eastern suburbs at the moment,” he said.
“We were anticipating a yield of around 5 per cent, but the result exceeded all expectations in further proof western Sydney is on the map for buyers seeking investment opportunities.”
Originally a Westpac cheque-clearing centre, the 1104sqm single-level office has basement parking for 40 cars and is within walking distance of Auburn station and Auburn Central Shopping Centre.
The Commonwealth Government has a lease on the site until December 2026, with two three-year options and is generating a net income of $331,170 for the owners.
Mr Dowdy said the asset’s central Auburn location, proximity to Parramatta, a blue-chip Government lease and potential development upside drove strong interest over the campaign.
“The local buyer beat competition from parties based in Sydney’s eastern suburbs and north shore, interstate and overseas,” he said.
Over 100 bids were lodged during the auction across 15 registered bidders who were 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.