This article is from the Australian Property Journal archive
AN interstate private investor has paid $3.2 million at auction for a corner retail property at Smith St Collingwood.
The property comprises two shops and a first level studio and was sold by TCI Property Consultants who has managed the properties for over a decade for the owners, who held the investment since 1954.
Located at 378-380 Smith St, the property comprises a building area of 694 sqm on a site area of 530 sqm.
With the three tenancies, mostly with a fashion industry based connection, producing a rental income of $214,000 plus GST and outgoings the indicative return is about 6.7%.
The leases are 380 Smith St to TSG –Champion Sportswear under a lease with currency until May 2012 with a further three year option at a current annual rental of $121,000 plus outgoings.
No 378 Smith St is leased to Reef Brazil under a three year lease until August 2013 with a further three year option. The tenant pays $72,000 plus outgoings. The studio area at the first floor of 378 Smith St is also let at an indicative rental of $24,800 plus a share of outgoings.
“My view was that the property will continue to generate rental income well into the future, especially with the strength of Smith St as a growing direct fashion sales and design retail precinct, where most of the major branded retailers are already present,” TCI Property agent Jack Teneketzis said.
“There will doubtless be opportunities for redevelopment into the future including the potential addition of upper levels to the existing single level building sections.
“The longest of the existing leases extends until August 2016 so there is effectively five years for the new owners to plan ay proposed redevelopment,” Teneketzis concluded.
Australian Property Journal
