Big-ticket Neutral Bay TAB site sells at auction for $3.4 million

The TAB site at 128 Military Rd, Neutral Bay, has sold.

A Tabcorp-leased commercial site at Neutral Bay was the big-ticket item to sell at a commercial auction event at the Sydney Opera House this week.

The property sold for $3.4million on a 4.69 per cent yield at the Burgess Rawson Flagship Portfolio auction event.

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The 175sqm property, at G02/128 Military Rd, is also close to a Coles, Woolworths and The Oaks Hotel.

Kieran Bourke, Burgess Rawson associate director, said the property piqued the interest of more than 100 hungry investors.

“We received well over 100 inquiries and 18 contract requests – the A-grade ASX listed tenant, location and favourable lease terms were all major draw cards for the interest received in this property,” he said.

There were 18 contracts issued.

The property is expected to return an annual net income of $159,570 (plus GST), with three per cent annual rental increases.

“Reporting an annual revenue of $5.224 million in FY20 and boasting 4400 locations nationally, Tabcorp is a solid tenant boasting a reliable investment opportunity to astute bidders,” Mr Burke said.

The auction event was the second for 2021 yesterday securing a strong clearance rate of 90 per cent. Nine from 10 properties sold either prior to auction or under the hammer with the final one close to being finalised.

Another star sale of the day was a strata-titled pharmacy in Cardiff, NSW, tenanted by Star Discount Chemist, which sold for $2.655 million on a 4.43 per cent yield.

The asset is tenanted to one of Australia’s leading pharmacy groups on a secure 10-year lease Mr Bourke said the sale of the site demonstrates the current demand for strong regional commercial assets.

“With the trend of people moving away from central city locations into regional areas, we have noticed a shift in the market with regional assets becoming increasingly more sought after,” he said.

“The sale of the Cardiff Pharmacy is a testament to this growth corridor regional NSW is experiencing.”

A prime location.

Burgess Rawson director Simon Staddon said investor confidence in regional NSW appeared to be a long-term transition, not just the current climate due to COVID.

“The sale of two pharmacy tenanted investments including Chemist Warehouse in Nowra for $2.755 million and the pre-auction sale of a medical centre in Mona Vale emphasises the strength and demand of the essential service medical asset class, this sector is incredibly hot right now and growing in popularity.”