This article is from the Australian Property Journal archive
A RETAIL investment at Glenferrie Rd Malvern, one of Melbourne's prized shopping strips, has changed hands for the first time in 40 years.
Agents Kliger Wood Real Estate Lou Montalti sold two-storey building at 183 Glenferrie Rd Malvern for $2,005,000.
Montalti said he was expecting offers around the $1.7 million mark.
“This was the first time in 40 years that the opportunity to bid for the building was presented and with five bidders the property has been purchased by a local private investor on an indicative 3.81% return.
“Key considerations here were the position and the nearby landmark traders. The prominent Readings bookshop chain is the trader on the immediate north side property while directly across the street is the major Coles Malvern supermarket,” he added.
The building offers ground floor retail space with a two bedroom residence above.
The total site area is 220 sqm but importantly it has rear laneway access and room for several car parks on the rear of the site.
The retail component is leased to a long established housewares trader under a lease for ten years which commenced in October 2008 with annual CPI increases allowed.
In addition there is a review to market due in October 2013 which is in effect the half way term of the original ten year lease. The income from the retail lease is currently $60,189 with all outgoings except land tax met by the tenant.
In addition the residence above is let on a one year lease from 15 August this year at a current annual rental of $18,252. The total income from both occupancies is set at $78,442.
Property Review
