Five retail spaces in Sydney’s Redfern are expected to sell for about $6 million, or more than $18,000 a square metre.
The five strata properties at shops 1-5, 94 Pitt Street are part of the Alchemy development. The vendor is the complex’s owner and developer AIL Property Group.
The net lettable area of the shops is 323 square metres in total, ranging from 55.1 square metres to 134 square metres. The combined net income is $345,103 per annum.
The tenants are all food-and-beverage outlets, including Juan Bowl & Tea, Fern St Eatery, Bart Jr. Mediterranean bar and restaurant Isaacs, which occupies two shops.
“We are expecting high demand and we are happy to sell shops individually or collectively,” Justin Rose, selling agent from Ray White Commercial NSW, says.
“All the tenants of 94 Pitt Street started triple-net leases of five to eight years, plus options, in May 2017.
“There have been enquiries from both investors and potential owner-occupiers.”
Co-agent Kristian Morris says the investments each have strong covenant and would suit a broad spectrum of future owner-occupiers as well as investors.
“The Alchemy building is one of the first to come out of the ground since Redfern’s retail precinct started its transformation,” he says.
“This vibrant ground-floor retail space is part of an area that is gentrifying through a process of retaining village charm while introducing new mixed-use development.
“Considered the ‘new Surry Hills’, Redfern has evolved into a highly sought-after suburb as retailers and commercial operators have rushed to be part of this urban hotspot.”
Jeff Moxham, Samuel Hadgelias and Scott Stephens are also listed as co-agents.
The property is within 1km of the $1 billion Australian Technology Park redevelopment, the future home of the Commonwealth Bank and 10,000 employees.
The Alchemy development comprises 19 apartments designed by Shed Architects within a Federation building.
The investments will be auctioned off individually on June 13.