"Unprecedented demand" for car park strata near Sydney airport

It seems Sydney's residential buying frenzy has extended to another property asset class - car parks.

A freehold strata title car space opportunity at Sydney Airport has attracted more than 2,000 expressions of interest since its launch just three weeks ago.

The facility, operated and tenanted by Park and Fly, has just 602 single and double car spaces and is being marketed by Cramer Property.

Cramer Property managing director Erle Cramer said "The demand has been unprecedented… Investors have realised that this investment opportunity represents an excellent chance to diversify investment portfolios, whether for self-managed super funds (SMSF) or cash that is currently sitting in the bank looking for a better return".

Such is the demand he said it had received interest from the United States of America and Asia.
"There are no other opportunities in Australia where people can invest in a car park which is situated in a world class location offering returns of 6.5% per annum with assured yearly rental increases, said Mr Cramer.

Each week the car park facility in Mascot turns over 2,000 vehicles and services more than 4,000 customers.

The car park is located at 1008 Botany Road and comprises 154 single car parks are 450 double spaces. Prices for a single lot are $57,500 and $104,500 for a double.

The terms of the lease are five years with three times five year lease extension options.

An initial 6.5% per annum net return is offered in addition to 3% rent increases each year, except on the exercise of the option, when the increase will be 4%.

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