Vietnamese-based private investor looks for long term ‘uplift’ after buying a Paddington retail asset

A retail property in the popular Paddington-Rosalie precinct attracted for than 70 bids before selling under the hammer for a sharp 5.7 per cent yield.

Hunter Higgins from Colliers International at 11 Nash St, Paddington, which he sold for $3.5 million. (AAP/Image Sarah Marshall)

A RETAIL asset — boasting an ice creamery as one of its tenants — has been scooped up at auction after whipping up a bidding frenzy in Brisbane’s inner-west.

The fully-leased property at 11 Nash St, Paddington, was snapped up by a Vietnam-based private investor with a winning bid of $3.5 million.

It comprises a total of 223sq m across two tenancies and is set on a high-profile site spanning 511sq m in the popular inner-west fringe suburb.

The freestanding asset is occupied by prominent retail brands Cold Rock Ice Creamery and Burrito Bar on leases running until 2021.

Hunter Higgins from Colliers International, who conducted the auction campaign with colleague Stewart Gilchrist, said the property attracted intense investor interest.

He said there were a total of seven registered bidders on auction day and the asset was fiercely contested with 70 bids submitted.

“Opening at $2.7 million, bidding was very aggressive and escalated quickly,” he said.

“It came down to two groups with the private offshore investor successfully acquiring the property on a sharp 5.7 per cent yield.”

Mr Higgins said the offshore buyer had a focus on acquiring assets in Brisbane where he believed there was “uplift” in the market.

He said the popular Paddington-Rosalie precinct was very tightly held and the sale reflected the continued strong appetite for solid passive retail investments.

“This result demonstrates the strong demand in the market for quality retail investments in the sub $10m price bracket as well as the depth of interest from local, interstate and offshore investors,” he said.

“High quality, well located retail properties with long lease terms to national tenants are highly sought after by investors.

“Yields are very sharp, as evidenced by this sale, due to the rising competition to acquire properties that become available in the immediate fringe precincts.”