Family offload 20 retail investments portfolio

A PORTFOLIO of Melbourne retail shops has sold for a combined total of $18.50 million, reflecting an average yield of 3.4%.

Gross Waddell ICR managed the auction of the portfolio, which was the second sold off for the family who held the assets, all in the family has sold 20 properties for a combined total of more than $43 million.

This latest portfolio saw the sales all taking place in a single day on 7 April, with  the auctions took place at Leonda where at least 130 people were in attendance and 104 registered bidders.

“Retail assets in prime retail hubs continue to outperform expectations as the buyer pool for investments sub $5,000,000 is substantial. They offer buyers solid holding income as well as future potential to add value or develop,” said Michael Gross, director at Gross Waddell ICR.

The assets in the portfolio are all placed in the east and south east suburbs of Melbourne, with 804 Glenferrie Road, Hawthorn marking the most significant sale at $2.115 million, for a yield of 3.09%.

“We saw incredibly strong demand from investors with all properties seeing multi bidders competing. Demand for well-located investments only appear to be strengthening with buyers not appearing to be concerned with the potential of upcoming interest rate rises,” said Alex Ham, partner at Gross Waddell ICR.

While the asset at 28 Atherton Road in Oakleigh marked the tightest yield of the say at 2.73%, with a sale price of $2.0 million.

“The properties attracted interest not only locally but also from interstate and offshore with a number of buyers participating using our online bidding platform,” concluded Danny Clark, director at Gross Waddell ICR.

Earlier in the month, Andrew Greenway and Michael Gross from Gross Waddell, with Colliers’ Hamish Burgess and Ted Dwyer, were appointed to sell collection of shop and dwellings in Melbourne’s south eastern suburbs has come to the market as a whole for the first time in 50 years.