Investors bank on CBA branches as Raine & Horne sells two at auction

Raine & Horne Commercial South Sydney/Marrickville has sold two Commonwealth Bank (CBA) branch premises at auction.

A private investor, Ausjo Holdings Pty Limited, secured 202-204 Beamish Street, Campsie (pictured above) for $6.9 million. The building is located on Campsie’s main retail strip, near Campsie Station and Campsie Centre. The property is 100 square metres and has a current rental price is $410,000 per annum.

Luke Smith, director of Raine and Horne Commercial South Sydney/Marrickville, says the sale is a strong result considering the current lease term to the CBA had approximately 12 months remaining.

“We fielded over 300 enquiries during the marketing campaign for this property, and at $6,900,000, this sale represents an approximate net return of 5.9%.”

A private investors syndicate secured 118 Argyle Street, Camden (pictured below) for $6.3 million.

The commercial building is 646 square metres, is two storeys and has the capacity to house five tenants. The CBA has no intentions of moving from the first floor, according to Raine and Horne selling agent, Rebecca Saab.

“The ground floor of 118 Argyle Street, Camden will remain leased to the CBA, while the building has the added bonus of two Telstra tower leases which generate an additional $46,000 per annum in addition to the current net rental of $445,810 per annum,” said Saab.

Smith describes both properties as blue chip opportunities.

Raine and Horne Commercial South Sydney/Marrickville sold an additional four properties sold at the auction.