Sydney and Newcastle buyers gunning for commercial property at Fort Scratchley auction

Sydney and Newcastle buyers gunning for commercial property at Fort Scratchley auction

Newcastle NSW (19 September 2017) – A private Sydney developer has paid $1.75 million for a 2,000 square metre site in the heart of Nelson Bay. The strong result was a highlight of Raine & Horne Commercial Newcastle’s Super Action held last week at iconic Fort Scratchley.

“Nine commercial properties from the Hunter region went under the hammer at the auction, which attracted more than 60 interested parties to Fort Scratchley and 22 registered bidders, including several big guns from Sydney and Newcastle,” said auction coordinator, Steve Dick, Director of Raine & Horne Commercial.

“The turnout was impressive given auction attendees had to negotiate preparations for the finale of the V8 Supercars Championship, which will take in some of Newcastle’s best landmarks, including Fort Scratchley, in late November.

“Six of the properties sold under the hammer, a result that confirms the health of commercial real estate markets in Newcastle and the Hunter region,” said Mr Dick.

The market’s vigour was exemplified by the auction of a small shop at 207 Cessnock Road, Abermain, which sold for $335,000 to a Sydney investor.

“Ice Box Liquor has leased the 84 square metre building for the past 20 years. The property generates a net return of $26,290 p.a. with annual increases of 3% built into the lease. Ice Box has just committed to another 5-year lease,” said Mr Dick.

“The property has excellent main road exposure. However, it’s the quality of the lease rather than the longer-term real estate fundamentals that attracted investors to this property. This shows the strength in the investment market.”

Other properties to sell under the hammer included a 4,422 square metre parcel of land in Charlestown for $625,000 to prominent Newcastle investor. A local business operating in the security sector secured a warehouse at 1 Stephen Street Georgetown for $710,000.  

A private Sydney-based investor purchased a modern tilt panel warehouse on the fringe of the Newcastle CBD for $430,000. The property at 8/11 McIntosh Drive Mayfield West is home to PDC Group. The electrical wholesaler is on a 5-year lease of $29,500 p.a. with options until 2027, according to Mr Dick.

Security firm GPW Security Screen Doors, which is part of the Crimsafe Group, purchased a strata building for $580,000 under the hammer.

 “The property comes with a showroom, an office and two workshops and the former owner was selling because the building was surplus to their needs,” said Mr Dick.

 Super Auction results 14 September 2017

 

Address

Property type/zoning

Action

Price

Buyer

280 Pacific Highway, Charlestown

Land

Sold under the hammer

$625,000 under the hammer

Local investor

754 Hunter Street, Newcastle West

Mixed use retail

Passed in

Now selling by private treaty for $2.1 million

N/a

8/11 McIntosh Drive, Mayfield West

Industrial

Sold under the hammer

$430,000

Private Sydney based investor

8 Nelson Road, Cardiff

Industrial

Sold under the hammer

$580,000 + GST

GPW Security Screen Doors

57-59 Robert Street, Wickham

Residential

Passed in

(Under Offer)

Now selling by private treaty for $1.4 million

N/A

5/192 Macquarie Road, Warners Bay

Industrial

Passed in

(Negotiating)

Now selling by private treaty for $380,000 + GST

N/A

207 Cessnock Road, Abermain

Retail

Sold under the hammer

$335,000

Private Sydney investor

35-39 Donald Street & 1 Yacaaba Street, Nelson Bay

Development site

Sold under the hammer

$1.75 million

Sydney developer

1 Stephen Street

Industrial warehouse

Sold under the hammer

$710,000

Private investment company Bellamy Property Investment

 

For further media information contact:

Steve Dick, Director, Raine & Horne Commercial Newcastle on 0425 302 771

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