Best & Less Leichhardt HQ for sale with leaseback

Value Retail Group is selling the headquarters of its Best & Less discount fashion chain.

In Leichhardt, five kilometres west of the Sydney CBD, the offering includes a four-level commercial building joined to warehouses.

The asset is expected to sell for more than $25 million, according to this Daily Telegraph item.

VRG is targeting investors – the Parramatta Road holding coming with a minimum three year leaseback at a starting annual rent of $1.3 million.

Given the office occupies a 6265 square metre block – which marketing agency Colliers International said is one of the largest to be offered for sale locally in recent years – developers are expected to show an interest, too.

Earmarked for a rezoning to B4 Mixed Use, the land could accommodate a building rising to just over 20 metres.

VRG is speculated to have over the years rejected a number of offers from builders for the parcel.

The owner occupier paid $4.5 million for 657-673 Parramatta Road in 1998 – later expanding with the purchase of neighbouring blocks to occupy for warehousing and car parking.

The holding spans two sides of Upward Street.

Brokers James Cowan and Matthew Meynell will launch an expressions of interest campaign for VRG next month.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco