FEROS Hotel Group has snapped up the iconic Highfield Caringbah at 32 Banksia Road
in Sydney’s south for circa $15M following a successful expressions of interest campaign.
The asset had a 3,072sq m* building area and 1,024sq m* land area, was on the northern side of the Kingsway and had street frontage to Mackay Street, Banksia Road and Hay Lane.
The property was marketed and sold by Ray White Commercial NSW – Sydney City Fringe Principals Kristian Morris and Justin Rose.
Mr Morris said there was strong interest throughout the campaign and the final sale price represented a sub-four per cent yield.
“This was a well-executed campaign with 85 direct enquiries, 15 different groups inspecting the property and multiple parties interested close to the four per cent yield mark,” he said.
“Buyers saw the value in such a long lease (15-years plus options totalling up to 60 years with ratchet clause in favour of the lessor) and strong covenant.
“Hotel assets that are subject to such a long lease don’t come up very often and this resulted in such a tight cap rate.