Iconic Highfield Caringbah hits the market

EXPRESSIONS of interest are being sought for the sale of the iconic Highfield Caringbah at 32 Banksia Road with the property having a long lease to the Feros Hotel Group.

The asset, that comes with a 3,072sq m* building area and 1,024sq m* land area, is on the northern side of the Kingsway and has street frontage to Mackay Street, Banksia Road and Hay Lane.

The property is being marketed and sold by Ray White Commercial NSW – Sydney City Fringe Principals Kristian Morris and Justin Rose.

Mr Morris said the asset offered a secure 15-year lease to the Feros Hotel Group plus options totalling up to 60 years with ratchet clause in favour of the lessor.

“The Feros Hotel Group are proven operators that have stood the test of time in this area of the market and have done an amazing job in developing the building into one of Sydney’s best vertical offerings,” Mr Morris said.

“They’ve spent circa $12M on upgrades, transforming it from a suburban worker’s club into a landmark destination for the local community.

“It offers a double net lease with net passing income of $600,886 + GST, and has future development potential to add accommodation and additional rooftop bar, STCA.”

Mr Rose said the property was an outstanding three-storey mixed-use hospitality asset with four separate but interconnecting dining experiences.

“It’s rare to have such a long and secure lease to a group that’s committed to the area, and it will offer the right buyer an investment seldom offered to the market,” Mr Rose.

“These freehold subject-to-lease (FSTL) opportunities are rarely available and it offers a stress-free and hassle-free annuity income stream, with the tenant paying 100 per cent of the outgoings and running costs.

“It’s close to the Caringbah Town shopping centre and major retailers such as Coles, Woolworths, McDonald’s and is just 150* metres to Caringbah train station.”

*Approximately.