A retail property leased to The Good Guys in Warrawong recently sold to a Sydney investor for $7.15 million.
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Savills Australia agents Clinton Baxter, Nick Peden and Jesse Radisich brokered the deal for 79-85 King Street on behalf of Australian Financial Review Rich Lister Andrew Muir, whose father founded The Good Guys in Essendon in 1952.
The consumer electronics retail chain was subsequently sold to JB Hi-Fi for $870 million in 2016.
“We are witnessing renewed strength and confidence in the large format retail sector, as investors continue to digest the presence of Amazon in Australia,” Mr Baxter said.
“They’re now recognising that the potential impacts for the commercial property market are likely to be insignificant.”
The sale follows Savills Australia’s brokerage of a $150 million portfolio of properties leased to The Good Guys across Australia.
The Warrawong sale is the final property in The Good Guys portfolio to be sold off by Muir.
Mr Peden said the new owner would be holding the site as an investment, with the current lease having about three-and-a-half years left to run, plus a five-year option.
Meanwhile, Tim Jones, director of commercial sales at MMJ Real Estate Wollongong said the suburban central business districts in the Illawarra’s northern suburbs are continuing to show the benefits of increased tourist visitation and a sustained residential population growth.
He said evidence of these thriving conditions is the recent sale of 43-45 Princes Highway, Fairy Meadow.
The commercial/retail site transacted prior to auction to an Illawarra investor at a yield of 4.2 per cent net, equating to a sale price of more than $3.6 million.
Geoff Jones from MMJ Wollongong said increased tourism has led to the “emergence of a significant number of new cafés, bars and restaurants” that residents and visitors to the northern suburbs are benefiting from.