Milk bar sells for $19 million
The 1951 Bates Milk Bar on Campbell Parade in Bondi, one of the area’s most iconic spots, has been snapped up for $19.12 million.
The new owners are Allen Linz's Rebel Property Group, Capit.el Group's Eduard Litver and Gil Baron.
Bidding for the property on Wednesday started at $10 million.
What followed was a bidding war which escalated with $500,000 bids coming in. And things got so intense that price nearly doubled.
The auction lasted 45 minutes. Other bidders included prominent eastern suburbs businessman Theo Onisforou and up-market residential developer Danny Avidan.
Indeed, everyone who was anyone in Sydney’s investment and development community was there to watch the action. Even TPG Telcom’s Teoh family put in an appearance although they didn’t make a bid.
The Bates Milk Bar, which closed in 2001 after serving customers for 50 years, is not only known for its once "famous choc-malt milkshakes".
It also has a tight net yield, at just over 3 per cent post sale.
The owners are looking to retain the building’s character. While it has the potential for residential development, they will be keeping it this stage as an investment.
It is a certainly a handy addition to Rebel Property's footprint in the area, which includes the Pacific Bondi apartments, formerly the Swiss Grand Hotel.
Retailers Platypus Shoes, Gelatissimo, Natalie Alamein and Mezi Retail have the lease on the 1920s freehold commercial property. With three residential tenancies, it generates a tidy net annual income of over $600,000.
Colliers International's Miron Solomon managed the sale of the property with colleague Matt Pontey and Cushman & Wakefield's Anthony Bray.
Mr Bray said the area was attracting a lot of interest.
"Interest has never been higher for Bondi and will continue to swell in 2016 as further new developments are completed," Mr Bray told the Australian Financial Review.
"This renewed interest in living in the beachside community, has seen residential and commercial property prices hit record levels."
by Leon Gettler, September 22nd 2016
