This article is from the Australian Property Journal archive
A SMALL investment property located at 569 Springvale Road Springvale leased as the local mower shop has been sold at auction by Crabtrees Real Estate on a low yield of 1.75%.
The property which has a current lease rental of only $15,717 under a three year lease with annual CPI increases until August 2102 sold under the hammer for $875,000.
Crabtrees director Chris McKenzie said that the single level property only has an area of 130 sqm with a Business 1 zoning but is part of the Springvale South Shopping Centre anchored by an IGA supermarket and twenty specialty shops.
“Our phones have been running hot since we began the auction campaign and we must have had sixty five serious enquirers. I understand that the purchaser will look to occupy the property on expiry of the existing three year lease to Springvale Mower Mart Pty Ltd with no options which began from 1 August 2009.
“I understand that the vendor’s family originally bought the property in the 1960s for around $22,000 so it has delivered significant capital appreciation,” McKenzie concluded.
Australian Property Journal
