- The asset is currently leased to Italian restaurant Eastbank
- Has a net income of $850,000 per annum
- Two nearby assets sold at a rate from $130,000 to $180,000
One of the largest strata retail offerings on the same Circular Quay strip where not one but two retail records have been broken during the past year has come to market.
Located in a prime corner ground floor position and leased to renowned Italian restaurant ‘Eastbank”, the 151 sqm property at 2/61-69 Macquarie Street is expected to receive offers of over $23 million.
Currently, the property has a net income of $850,000 per annum. There is a five-plus-five-plus lease structure, with annual reviews of 4%.
It has a 90 sqm licenced outdoor space from Place Management NSW for 72 seats. There is approximately 80 sqm external entitlement for ongoing use under the Strata By-Laws for a further 82 seats.
Joseph Lin and Callum Cooke of Colliers are tasked with selling the property, in conjunction with Fiona Yang of Plus Agency.
“Regardless of recent rate rises and perceived worsening purchaser sentiment within the market, trophy assets such as ‘Eastbank’ have proven to be resilient and are still achieving premium results,” Mr Lin said.
“Furthermore, long-term leases with strong increases have attracted an additional buyer pool of investors seeking sustained, robust returns over short-term capital appreciation.”
The records broken this year include the $11.5 million sale of the Guylian Belgian Chocolate Café and the $5.7 million of the 43 sqm shop leased to international tea giant “Coco”.
Over the past 18 months, sqm rates have often been between $130,000 to $180,000, which may not be surprising given the world-famous location.
“We expect the opportunity, although leased, to appeal to restaurant operators seeking a foothold within the Circular Quay market,” Mr Cooke added.
The expressions of interest campaign closes Thursday, 20 October.
