A retail property leased to The Good Guys in Warrawong, New South Wales, has sold to a local investor for $7.15 million, as confidence in Australia’s retail market re-emerges.

Savills Australia’s Clinton Baxter, Nick Peden and Jesse Radisich brokered the deal for 75-89 King Street on behalf of AFR Rich Lister, Andrew Muir, whose father founded The Good Guys in Essendon in 1952. The consumer electronics retail chain was subsequently sold to JB Hi-Fi for $880 million in 2016.

“We are witnessing renewed strength and confidence in the large format retail sector, as investors continue to digest the presence of Amazon in Australia,” Mr Baxter said.

“They’re now recognising that the potential impacts for the commercial property market are likely to be insignificant.”

The sale follows Savills Australia’s brokerage of a $150 million portfolio of properties leased to The Good Guys across Australia.