An investment opportunity anchored by a long-term tenancy to a high-profile Cronulla nightclub venue is being offered for sale through Ray White Commercial NSW – Greater Sydney South.
The site of Fusion Nightclub at 84-86 Cronulla Street, Cronulla, is being marketed by Ray White Commercial NSW – Greater Sydney South directors Charlie Yankos and Brad Lord, on behalf of Edford Pty Ltd, headed by local businessman Stephen Fleming.
The offering comes as demand for quality, tenanted assets remains high across Sydney, according to Ray White Commercial research, with interest rates at long-term lows.
Mr Yankos says the approximately 726sqm building area is leased by Fusion’s operators and the nightclub licence for the premises is attached to the property.
“This is an outstanding strata investment opportunity which is on the market for the first time in almost a decade,” he says.
“Fusion is one of the most popular nightclubs in southern Sydney and has become an institution in Cronulla and the Sutherland Shire over more than a quarter of a century.
“Fusion proudly boasts that it is the ‘hottest, sexiest and busiest club in The Shire’.”
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Mr Lord says the property, which is being marketed via expressions of interest, is returning net rental income of approximately $233,000 per annum. The Fusion’s lease runs until 2025 with a further two option terms of five years, making this an ideal long-term investment proposition for an astute buyer.
“This is also one of the few nightclubs in Sydney which has a 3am trading licence,” he says.
“The nightclub is licensed to cater for 440 patrons and is the largest late-night venue in Cronulla.”
Strong yield compression has been felt across all Sydney asset classes with retail being more robust — particularly in locations which offer high traffic and income levels, says Ray White Commercial Head of Research Vanessa Rader.
“In recent years and expected to continue, development has been high across Cronulla and the surrounding suburbs resulting in a strong increase in population,” Ms Rader says.
“This increased density is likely to put further pressure on local retail infrastructure keeping occupancy elevated.”
The Fusion site is in the heart of the Cronulla CBD. The beachside suburb of Cronulla is an affluent area located approximately 26km south of the Sydney CBD and well serviced by public transport including rail links to the city.
Expressions of interest for Lot 2, 84-86 Cronulla Street, Cronulla, close on Friday, November 10 2017 at 4pm (Sydney time).