A Sydney investor has purchased a 1,697sq m retail warehouse investment property at 118-120 Newcastle Road, Wallsend, from the well-known Newcastle-based family, the Piddingtons, for $3,635,000.
The Piddington family had successfully operated their carpet business out of the property for a long period of time and have held 118-120 Newcastle Road in their portfolio for over 40 years.
The property is currently occupied by three tenants with a total annual net income of $280,000. The net initial yield achieved was 5.58% with a building rate of $2,142/sq m.
118-120 Newcastle Road comprises a multi-tenanted retail warehouse building located on a tightly held major arterial road. The property is split across three retail warehouses with a total internal area of 1,697sq m. The site totals 3,028sq m with dual street frontage and 25 on-grade car parking spaces.
The deal was negotiated by Nick Lower, Ollie Ridley and Selin Ince of Savills Australia, who said the property was bought as an investment opportunity with the aim to diversify the buyer’s existing portfolio in terms of asset class and to capitalise on the growth of Newcastle.
Nick Lower, State Director - NSW, Metro & Regional Sales at Savills Australia went on to say considering the length of time the family had owned the property, it was important to ensure the new owners chose the right purchaser to transact with.
“Having had significant interest in the asset and numerous offers presented over the Christmas period, the eventual purchasers were attracted to the strong fundamentals of the property, and the strong growth indicators of the greater Newcastle region.
“With significant national and international funds beginning to flow into Newcastle and other major regional areas, our team expect buyers to continue to find confidence in regional centres that offer well positioned assets like Newcastle Road. As a result, we are likely to see strong competition amongst investors alike searching for value” he said.