LOCATION AND TENANCY PROFILE SEALS THE DEAL
Sydney investor snaps up refurbished 10-tenancy Boonooroo Park Convenience Centre on a prime corner block in Carrara for $10.2 million
A NEAR fully-occupied Carrara shopping centre – containing a recently-built 7-Eleven service station – has sold to a Sydney investor for $10.2 million.
The Boonooroo Park Convenience Centre was sold by Firestar Developments, associated with Tony Lenan, which bought the asset in 2015 for $3.85 million.
A 7-Eleven service station was constructed in the first half of 2016 while the centre was refurbished in the second half of the same year. The 7-Eleven is on a 15-year lease expiring in 2031, with four five-year options.
Boonooroo Park’s other tenants comprise Pizza Hut, an Indian restaurant, Japanese restaurant, bottle shop, hairdresser, fish ’n’ chip store, Chinese restaurant and a coffee shop.
Mr Lenan said Firestar has a strong track record of turning around old shopping centres in need of refurbishment.
“It has been a big project for us and we are very happy with the result,” he said.
“We sold it at a great time and the buyer should pick up a great investment.”
Mr Lenan said Firestar extensively refurbished Boonooroo Park.
“We revamped it from top to bottom so it looks brand new.”
The centre was marketed by Burgess and Rawson agents Jamie Dewe, Glenn Conridge, Jamie Perlinger and Darren Beehag, together with Colliers International’s James Crawford.
An expressions of interest campaign followed an unsuccessful auction in Sydney in June.
Mr Conridge said the campaign attracted almost 100 inquiries.
“The southern investors are a little bit more aggressive and are prepared to transact on tighter yields,” Mr Conridge said.
The property, which is situated on a 4793sq m block, sold on a 7.2 per cent yield.
Mr Conridge said the investor was attracted to the strong tenancy profile and the location on the corner of Nielsens Rd and Coelia Court.
The 10-tenancy centre has one vacancy and net annual income of $744,287.