Sizzling September Auction (2017)

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 2000 square metre site in the heart of Nelson Bay. The strong result proved to be one of the highlights of Raine & Horne Commercial Newcastle’s Super Action held last week at iconic Fort Scratchley.

“Nine commercial properties 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.

“Nine properties went to auction with six selling under the hammer. This result confirms the health of commercial real estate markets in Newcastle and the Hunter region,” said Mr Dick.

The health of the region’s commercial markets was exemplified by the sale to a Sydney investor of a small shop at 207 Cessnock Road, Abermain 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.

“This 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 and this shows the strength in the investment market”

Other properties to sell under the hammer of auctioneer Jason Maxwell of Raine & Horne Commercial Newcastle included a 4,422 square metre parcel of land for $625,000 to prominent Newcastle investor Michael Constantine. A local business in the security sector secured a warehouse at 1 Stephen Street Georgetown for $710,000.

A private Sydney-based investor secured 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.

Another in the security sector 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.

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