Supercheap Auto sells for premium on second attempt
A prominent northern suburb showroom leased to Supercheap Auto has sold to a Sydney investor for $5.45 million.
The off-market deal for 1345-1349 Sydney Road, Fawkner, reflects a 5.3 per cent net passing yield.
The retailer’s parent, ASX-listed Super Retail Group (SUL), recently signed an eight year lease.
Savills’ Rick Silberman and Stephen Bolton acted for seller, Kinglake Group.
The asset failed to sell with a different agency in February.
Fawkner is 12 kilometres from Melbourne’s CBD.
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On a 1030 square metre Commercial 2 zoned block, 1345-1349 Sydney Rd previously traded in August, 2023, for $3.8m.
The improvement includes a 1000 sqm showroom, 85 sqm of offices and open-air parking.
“This secure, blue-chip investment underpinned by a new…lease to SUL is prominently positioned on busy arterial Sydney Rd,” Mr Silberman said.
“The [buyer] was drawn to the land rich nature of the property, quality tenant, long lease and main road Melbourne metropolitan location,” he added.
“Single tenant large format retail investments are emerging as the most sought-after retail asset class at a sub $10m price point,” according to the executive.
“Sentiment around the retail investment market has been subdued in 2024 but there is renewed confidence as demonstrated by several recent…transactions”.
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