Honeysuckle’s long-established Silo Restaurant & Lounge has sold off-market for $2.1 million.
Colliers International agent Adam Leacy said the sale, to a Gunnedah-based investor, gave a yield of 5.5 per cent.
Silo will continue trading at the Newcastle Harbour-front site, the restaurant having a new six-year lease.
Mr Leacy said the buyer, who purchased the property from a Hunter-based investor, was an underbidder at a recent Colliers auction of a Honeysuckle premises leased to Forsythes Recruitment.
The latest deal was a reflection of how superannuation money was driving the market.
“Mums and dads now, there’s a newfound appreciation for commercial and especially commercial returns with super funds,” Mr Leacy said.
Newcastle’s infrastructure boom, including the building of new units, the university and the law courts, also came into play.
“What’s happening is out-of-area investors are coming in and purchasing,” Mr Leacy said.
“It’s turning the yields … property is getting a little bit more expensive.”
OCEAN-VIEW OFFICE SUITE
AN office suite opposite Merewether Beach is set to be auctioned by Knight Frank Newcastle next month.
Unit 5/91 Frederick Street is located in a commercial complex, its 196-square-metre strata area including a balcony and two-car garage.
It features uninterrupted views of Merewether Beach to Cooks Hill from the upper floors and private balcony, and immediate proximity to Merewether Surfhouse and The Beach Hotel.
Nick Lane, of Knight Frank, said the property was being sold to dissolve a long-standing partnership of private investors that had held it since 2007.
The property will go to auction at 11am on October 26 at the Chifley Apartments Newcastle.
STARLINE Alpacas Farmstay Resort in Broke is for sale with an asking price of $6.9 million. It is not up for auction as stated in a headline last week. The error was made in the editing process.