A prime Byron Bay retail site with an annual income of almost $0.5 million has been sold to a Hong Kong-based private investor for $6.48 million.
It last traded for $5.26 million in 2003.
Michael Ludski from Teska Carson, who brokered the deal with Byron Bay Property Sales, said the fully let Lawson Arcade attracted at least 100 enquiries – predominantly from Melbourne, Sydney and overseas – with nine formal Expressions of Interest lodged.
Nevertheless, the rental income return of $465,000 on the $6.48 million price paid, represented ‘a tight 4.7 per cent yield’ for such a ‘prized retail asset’, Mr Ludski said.
He added investors had ‘recognised the tremendous growth potential in one of Australia’s most popular beach resorts and the limited retail space available in the town,’ implying stressed retailers could potentially see further price increases.
He said Byron Bay’s popularity, ‘attracting high levels of tourists and new residents’, was a ‘key factor’ in achieving the price.
The 594 square-metre arcade contains three shops, two restaurants and four office suites and had recently undergone a $250,000 refurbishment.