Two major bank buildings in St George have been snapped up by investors for a combined $9.01 million.
The NAB Rockdale and Westpac Kogarah went to auction on September 11.
The NAB in Rockdale sold for $5.5 million on a 4.33 per cent yield and the Westpac bank site in Kogarah sold for $3.5 million on a 4.58 per cent yield.
The properties were marketed by Burgess Rawson Commercial Real Estate.
Burgess Rawson director and selling agent, Simon Staddon, said the highly desirable properties received record-high interest from investors ahead of auction day.
“The popularity of these sites was not surprising – when you have two blue-chip investments up for sale in metropolitan Sydney that are tenanted by leading financial institutions, enquiry levels go through the roof as quality stock remains limited, but investor demand is still strong as they want to add blue chip investments to their portfolio,” Mr Staddon said.
“The huge advantage with properties of this nature is that they are ‘set and forget’ investments – you can easily manage them while benefitting from healthy income streams, and when the time comes you could take advantage of the strong potential for future development.”
The property at 514 to 518 Princes Highway, Rockdale, is leased by NAB plus a convenience store and an accountant. NAB renewed a five-year lease on the building last September with options to 2028.
The 503 square-metre site was described by the agent as Rockdale’s “best landmark retail investment”. The property has a net income of $238,534 per annum.
The Westpac-leased property at 134-136 Railway Parade, Kogarah was marketed by the agent as a “trophy freehold investment in the heart of St George”.
Westpac has leased the building until August 2022 with options to 2028. It has a net income of $160,425 per annum.