A private investment company has snapped up the SUPA IGA Doonside, a neighbourhood shopping centre with a 3,500m2 supermarket as anchor tenant, in the established suburb west of Blacktown, Sydney for $18.15 million on a 5.32% net yield from a private Sydney investor, in an off market transaction.
Located at 52 Rosenthal Street, Doonside, the centre offers a total GLA of 4,402m2 and is 100% leased to a wholly owned subsidiary of ASX listed company, Metcash Limited, a leading wholesale and distribution company, expiring in 2024 with a 10 year option period. There are an additional four internal sub lease tenancies which complemented the offer.
Steven Lerche of Savills Australia negotiated the off market transaction with colleague Andrew Palmer and said “The supermarket sits on a large site area of 15,300 square metres with convenient on grade parking for approximately 224 vehicles and benefits from future redevelopment potential due to its B2 Local Centre Zoning allowing for a multitude of uses (STCA)”.
Evidence of the development potential is the newly developed suburb of Bungarribee, a new suburb of 800 new homes for the area. Bungarribee is also an emerging hub for regional passive recreation, tourism, social and cultural activities with an extensive pedestrian and a cycling network located in the area.
“The infrastructure planned for the Greater Western Sydney Region will result in a windfall for Doonside and surrounding precinct. With the release of designated development land throughout the North West corridor it will allow for further business and housing to be built for the area surrounding Doonside,” Lerche added.
Doonside is conveniently located off Doonside Road a major north south vehicular route connecting the Great Western Highway to Blacktown. It is also strategically situated within easy distance to the junction of the M4 Western Motorway and the M7 Westlink giving it great connectivity to surrounding suburbs and beyond.
Lerche said “This transaction is proof that Sydney metropolitan assets sitting on large parcels of land in prime locations remain highly sought after by the private investment market.”