This article is from the Australian Property Journal archive
FOUR retail investments at Bundoora in Melbourne's north have sold at auction by Fitzroys for a total of $5.062 million.
The properties located at 7, 9 and 17 Copernicus Crescent and 22 Galileo Gateway, Bundoora, were sold individually.
Fitzroys agent Chris Kombi said the price achieved for each property was at least 10% above their respective reserve prices.
He said there were multiple bidders for each property with the auctions held in front of a large crowd.
“We received significant interest in each property throughout the campaign, reflecting the high demand for properties displaying solid investment fundamentals, including established tenants, long secure leases, depreciation tax benefits and strong prospects for future capital growth,” he added.
The big ticket item was 17 Copernicus Crescent, leased to national pharmacy chain Chemist Warehouse, which sold for $3.020 million on a yield of 5.98%, returning a net rental of $180,891 per annum.
It was followed by 9 Copernicus Crescent, leased to international brand Pizza Hut, which fetch $802,000 on 4.98% yield, returning $40,000 net per annum.
And 7 Copernicus Crescent, leased to the Bundoora newsagency & tattslotto premises was sold for $750,000 on a yield of 4.93%, returning $37,020 net per annum.
Finally 22 Galileo Gateway, leased to men’s barber The Legends Room, was sold for $490,000 on a 5.22% yield, returning $25.602 net per annum.
Kombi said due to the strong buyer demand, Fitzroys will be offering to the market by public auction, a further five retail investments within the Polaris Town Centre on Friday 19th September from 1pm on site.
The properties form part of Polaris Town Centre and adjoin La Trobe University. It includes a Woolworths Supermarket, Dan Murphy’s and 26 specialty shops. Polaris is part of a staged development, which will ultimately comprise approximately 1,100 dwellings.
Polaris has been identified by the state government, along with Darebin and Whittlesea City Councils, as an important retail hub with a strong and growing residential catchment.
Property Review
