Neutral Bay Office Block Going For $5.5m
Sydney Morning Herald
Monday March 26, 1990
Dominion Investments, a company owned by Pacific Grain Traders, is rationalising its property portfolio by dumping a four-storey office building in Neutral Bay in favour of upgrading to a larger property.
The building - 12 Waters Road - changed hands for $260,000 in January 1980 and then again in May 1980 for $410,000. Dominion bought it for $4.85 million and is asking $650,000 more than this sale price.
Although the vendors want $5.5 million, the property may earn up to $8 million for a purchaser willing to convert to strata title, according to the agent, Mr Peter Van Der Woude, of Colliers, Neutral Bay.
The property has a yearly rental income of $520,000 but it could command up to $600,000 a year, Mr Van Der Woude said.
The current yield is 9.5 per cent.
The ground floor consists of five retail suites, four of which are leased. The three upper levels comprise six commercial office suites and only one is vacant.
The total net lettable area is 1,578 sqm and includes 24 car spaces.
The property may be converted into 11 separate titles, the largest being 236.3 sqm and the smallest 175.9 sqm. Asking prices for these strata units may be between $250,000 and $1.5 million, Mr Van Der Woude said.
The current owners were not interested in spending the 12 to 16 weeks necessary to have such a development approved, he said.
Another retail complex, at 162-164 Military Road, Neutral Bay, on the Young Street corner, was passed in at $2.7 million when auctioned last Friday through Ms Sylvan Affleck of Ray White, Mosman. Contracts are expected to be exchanged this week.
With an annual net income of $260,857, the complex is leased by a 24-hour coffee shop, teddy bear shop, cane furniture store, and hairdresser.
The total area is 373.3 sqm, and each shop has three levels, a ground floor, mezzanine and upper mezzanine level.
The owners, Mistahugh Nominees Pty Ltd, directors of which are Geoffrey and Gail Hughes of Clifton Gardens, bought it for $325,000 in February 1980.
© 1990 Sydney Morning Herald