This article is from the Australian Property Journal archive
A RETAIL freehold property at Hampton East in Melbourne has sold for $1.746 million a yield of 4%.
Fitzroys senior associate Mark Talbot sold the two shops on one title at 874-876 Nepean Highway, Hampton East.
The 255 sqm single storey brick building is leased to a restaurant and takeaway food outlet on a land area of 328 sqm.
Zoned Commercial 1, the property was sold subject to two separate 5+5+5-year leases, returning a total of $70,840 per annum plus GST.
874 Nepean Highway is 171 sqm approx and is leased to Favourite Dumpling & Noodle Restaurant, returning $45,528 per annum plus outgoings and GST with 3% annual rent reviews.
876 Nepean Highway is 84 sqm approx and is leased to City Hall Fish Shop, returning $25,314 per annum plus outgoings and GST, with annual rent reviews by CPI and a market review at the option.
Talbot said the auction campaign generated an overwhelming level of interest, which exceeded expectations.
“On auction day, two principal bidders fiercely fought out the auction to a level whereby other potential bidders failed to even compete.
“This site represented an excellent land bank opportunity with significant redevelopment potential (STCA), which was ultimately a major force behind the final sale price,” he added.
Talbot said the final yield of 4% was more typical of properties he has sold in some of Bayside’s premier shopping strips such as Hampton St Hampton, Bay St Brighton and Church St Brighton.
Property Review
