Local investor pays $12.3m for Lidcombe Adidas outlet
A private investor has paid $12.3m for a Lidcombe blue-chip property home to an Adidas outlet shop.
The purchase price for 55-59 Parramatta Road was about $2m more than what had been expected when it first came to market in February. The sale represented a net yield of about 5.6 per cent.
Ray White Commercial Western Sydney’s Jai Sethi, Peter Vines and Victor Sheu brokered the deal following an expressions of interest campaign that had more than 100 inquires from across Australia.
There was also strong interest from local Asian groups who had expressed interest in either taking over part of the building or investors looking to tap into future growth of Lidcombe.
“We believe that convenience-based retail is hugely benefiting from consumers not having to go into shopping centres,” Mr Sethi said.
“The potential to value-add, reposition or redevelop with bonus FSR available for specific developments (subject to council approval), really appealed to the investment market.”
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Upon settlement, the owner stands to receive about $693,338 in net passing income per annum.
“This fully leased asset represented a highly sought-after opportunity to acquire a secure investment with projected future upside in the epicentre of the Parramatta Road bulky goods retail corridor,” Mr Vines said.
With Adidas the anchor tenant, the building features solar panels, a basement and ample carparking. Lidcombe has been a strong commercial market recently with a hive of sales activity including the $129.5m sale of Auburn Central shopping centre.