Commonwealth Bank’s largest NSW branch sells for $31.3m in Cabramatta

Commonwealth Bank branches are sought after by Asian investors.

A Melbourne-based investor with offshore support has picked up a Commonwealth Bank branch in the Sydney suburb of Cabramatta for $31.3m.

In a twist, the price paid for the property represents a yield of just 3.4 per cent, below even the falling cash rate, which stands at 3.6 per cent.

The sale represents one of the sharpest seen in this part of the property cycle and also puts on display the demand for well-leased buildings with appeal to Asian buyers.

There has been a quiet surge of sales in these markets, even while bigger investors stay on the sidelines in some areas.

The building at 38 John St, Cabramatta, was sold by a private family office to Everlong Dyamics Pty Ltd in a deal brokered by Colliers agents Harry and Andrew Bui. It showed a record land rate of $36,000 per square metre.

The 38 John Street, Cabramatta branch in Sydney.

The 1467sqm building, home to the Commonwealth for more than 50 years, is anchored by a 10-year lease with options to 2043.

The prominent double-storey retail and commercial block was the largest branch of the Commonwealth Bank in NSW when it has operated.

The property’s refurbishment was completed in 2023. It sits 200m from Cabramatta railway station and is in the heart of one of Sydney’s top multicultural retail and dining destinations.

The building was chased by local private investors, Asian investors and property syndicates.

Head of Asia Markets, Australia Harry Bui said Asian investors and overseas buyers valued these sites.

Harry Bui said Asian investors and overseas buyers valued the defensive nature of bank-leased assets. He said the deal introduced a new entrant from Vietnam and an interstate Asian investor who secured the asset at a record land rate.

Andrew Bui said the building was a blue-chip investment in one of Sydney’s most tightly held retail strips.

“The combination of a long-term lease to Australia’s largest bank, a prime John St location, and recent capital upgrades made this asset incredibly appealing to a wide range of investors,” he said.

“Bank-leased assets continue to prove their resilience and long-term value. Their essential service positioning and high-end fit-outs make them a safe haven for capital … in uncertain markets.”

The sale represents one of the sharpest seen in this part of the property cycle