NAB bank premises in Hurstville sells for $9.01 million

A refurbished two-storey retail strip property in Sydney’s Hurstville leased to NAB sold for $9.01 million at auction yesterday.

The sale highlights that retail property leased to bank branches with long-term leases have strong investment value, with the sale price equating to a yield of 5.85%.

Earlier this month a historic Parramatta bank, tenanted by Westpac, sold for $7.1 million to a Hong Kong-based investor.

The Hurstville property received over 90 bids, with bidding starting at $7 million, reported the Australian Financial Review.

Colliers International agent Matthew Meynell, who marketed the retail property alongside Steam Leung, called it a “very strong result” and said it indicated that buyers were chasing properties with “risk-averse qualities".

Both the ground floor and the first floor of the building, which stands on Hurstville’s Forest Road retail strip are leased to NAB on long leases.

The ground floor has a 10-year lease to 2020 with renewal options while the first floor is leased to 2015, also with renewal options.

The bank branch, which stands on a 418-square-metre site at 252 Forest Road is located within the central CBD of Hurstville surrounded by single- and two-level commercial/retail buildings.

It stands next to a St George bank branch and one further shop down from the Westfield Hurstville with bus services located at the front of the property and Hurstville Railway Station directly opposite.