Large format retail building in Western Sydney fetches $14.35 million

A private investor has snapped up a new, purpose-built, large format retail (LFR) building in Western Sydney for $14.35 million from Hydrox Nominees on a passing initial yield of 6.47 percent.

The 80 - 82 Mulgoa Road, Penrith property comprises nearly 2,750 sqm of gross lettable area retail (GLAR) and has leading homeware retailer Freedom Furniture as its anchor tenant and a complementary Guzman Y Gomez – both of which are on a 10-year lease term.

The selling agents were James Wilson, Harry Bui and Paul McGlynn of Colliers International.

“This sale reflects the highly competitive nature of Sydney metropolitan retail investments, particularly in the private investor sector (dominated sub-$30 million price point) where there is strong market depth for high profile investments featuring secure long term leases to national covenants,” said Wilson.

The 7,788 sqm site opened in December 2015 and is close to Penrith CBD.