Your digital subscription includes access to content from all our websites in your region. Access unlimited content and the digital versions of our print editions – Today's Paper.
Tamworth is making waves as a prime destination for investors seeking long-term security on their assets, painting a bright future for the region’s business community.
A perfect example of this trend is a “once in a lifetime” investment soon to be available in West Tamworth which is expected to rake in more than $4 million when it goes under the hammer on Tuesday, November 14.
For the first time in 20 years, two of the city’s prominent retail buildings – currently housing Autobarn Tamworth and Pendy’s Sips N Suds – are coming onto the market.
The joint listing’s selling agent and founding partner of Sydney-based Next Commercial, Anthony Bray, told the Leader this kind of investment offers the exact kind of long-term security landowners across the country are looking for.
“Due to the turmoil and the current state of the economy with interest rate rises and the like, people are looking for security, long-term security, in their investments,” Mr Bray said.
“Autobarn, with their parent company Bapcor, gives a lot of security to an investor to know that brand has been established well for the last 20 years and will be established for the next 20.”
The two buildings off Bridge Street can’t be missed on the western approach to town, neighbouring national industry retailers such as Shell Coles Express, Guzman Y Gomez, and Domino’s.
Mr Bray, who also recently helped sell the buildings Spilt Milk Bar and OzCar operate out of, says these Tamworth investments are increasingly catching the eyes of wealthy Sydney-based investors.
“These people are major players, they’ve got capacity to pick and choose where they want to be, and this is a very key location to these businesses,” he said.
“They bought their assets because they knew they weren’t going to have any problems going forward.”
Originally a Tamworth boy himself, Mr Bray said he’s proud to see his colleagues in Sydney finally recognise the region’s potential for growth.
“When I was a kid growing up in Tamworth this area was the corridor to the northwest, it was where you’d drive to get out to Gunnedah and the broadacre farming,” he said.
He said with the region’s growing reputation as a stable and secure investment hot spot, the buildings currently occupied by Autobarn Tamworth and Pendy’s Sips N Suds are expected to fetch a pretty penny.
“When we’re talking investment property, we look at the yield, so for example if you placed your money in the bank, the bank would probably pay you a yield of around four per cent,” Mr Bray said.
“In this instance, based on the competition in the marketplace, we would expect a yield of circa six per cent.”
With the properties’ combined rental income of $249,369, that translates to an expected selling price of about $4.16 million.
READ ALSO:
My Bray told the Leader the buildings’ current landlords, who are nearly in their 80s, have chosen to bring the assets to market to help simplify getting their affairs in order.
“The people that own the real estate are an elderly couple who have owned the property for the previous 20 years,” he said.
“If anything happened to my vendor in this instance, they’d probably find people they never knew arguing claims on their assets.”
The two assets will be auctioned as one lot on Tuesday, November 14, and if not sold, will be offered separately.
Their selling agent said he expects the properties would be worth even more separately, as they each attract a different audience of investors.
“An Autobarn is a trophy investment. It’s an investment people want to put in their portfolio and forget about … it’s a very select investment and people pay a premium to have the security, brand, premium location, and the knowledge that it’s hassle-free,” Mr Bray said.
The auto parts store has a renewed 10-year lease from November 2021 to November 2031 with options to renew again through 2041.
While the car wash is a slightly more risky investment, Mr Bray said if the building is sold separately he’d expect it to fetch a little less than $1 million, which is music to more frugal investors’ ears.
“Sips and Suds is operated by a very successful local family, but the lease is short-term, only three years. It’s been there for 10 years, but what it affords investors is a more affordable price point,” he said.
“It’s very rare to find good quality commercial or retail assets that have a market value of less than $1 million, and I’m talking regional NSW and regional Australia, there’s certainly nothing in Sydney like that.”
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
Originally from Austin, TX. "I wasn't born in Tamworth but I got here as soon as I could!" Jonathan covers a little bit of everything, but his main priorities are Tamworth Regional Council, Business, and Property. Send story tips to Jonathan via jonathan.hawes@austcommunitymedia.com.au
Originally from Austin, TX. "I wasn't born in Tamworth but I got here as soon as I could!" Jonathan covers a little bit of everything, but his main priorities are Tamworth Regional Council, Business, and Property. Send story tips to Jonathan via jonathan.hawes@austcommunitymedia.com.au
Advertisement
Sign up for our newsletter to stay up to date.
We care about the protection of your data. Read our Privacy Policy.
Advertisement
Recent Comments