Iconic Circular Quay property sells for $20.5m
The property on Macquarie St which overlooks Circular Quay.
A commercial property located on one of Circular Quay’s most profitable retail strips has sold for $20.5m and $135,761 per sqm.
The 151 sqm retail offering at 2/61-69 Macquarie St in Sydney enjoys a corner ground floor position and is currently leased to the notable Italian restaurant ‘Eastbank’.
The Colliers team of Joseph Lin, Steam Leung, and Callum Cooke sold the property, which is where the restaurant has operated since 1999, alongside Plus Agency’s Fiona Yang.
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The Circular Quay commercial property has sold for $20.5m
Mr Lin said the property has a 90 sqm licenced outdoor space for 72 seats, with approximately 80 sqm of external area entitlement for a further 82 seats – making it one of the largest strata retail offerings on the strip.
“This sale comes off the back of multiple successful strata retail campaigns run by the Colliers Strata team including a sale of a prime retail cafe on Macquarie St for 4.19 per cent yield to another Asian investor,” he said.
“Regardless of recent rate rises and perceived worsening purchaser sentiment within the market, trophy assets such as ‘Eastbank’ have proven to be resilient and are still achieving premium results.”
The property has a 90 sqm licensed outdoor space for 72 seats, with potential space for a further 82 seats.
Circular Quay is considered to be the most expensive retail strip in the country, with recent Colliers transactions including sales over $150,000 per sqm for a 75 sqm shop and $130,000 per sqm for a 43 sqm shop.
The commercial property has a net income of $850,000 per annum with a ten plus ten year lease structure.
Circular Quay is considered to be the most expensive retail strip in the country.
“Long term leases with strong increases have attracted an additional buyer pool of investors seeking sustained, robust returns over short-term capital appreciation,” Mr Cooke said.
“Investors face headwinds in terms of higher costs of capital and their natural reaction is to seek safety, which results in excellent prices for assets such as this premier Circular Quay retail space.”
