This article is from the Australian Property Journal archive
COMPETITION for commercial property investments across Melbourne continues to heat up, putting pressure on yields.
Ray White Commercial Glen Waverley commercial manager Ryan Trickey has sold a retail property at 75-88 Railway Parade in Glen Waverley, 19km south-east of the city.
In an off-market sale, Trickey sold the now super seeded Bendigo Bank for $4.5 million, representing a return of around 2.92%. The 321 sqm building includes two car parking spaces and sits on a 412 sqm site.
“This is a huge result. The sale price dwarfs the successful March auction result of 88 Kingsway for $3.61 million, however this was returning a sharper yield at just 1.89%,” he pointed out.
The 88 Kingsway transaction was negotiated by Savills’ Clinton Baxter and Joe Catanese.
Tricket said the Bendigo Bank sale does not fit the typical investment profiles where buyers are often fixated on direct return on investment.
“There are other factors in play, in relation to use, permits and future potential. These are not as tangible as benefits expressed as a percentage but are equally as important.
“What this sale clearly shows is strong confidence in freehold purchases in the suburban market and further thought towards the idea of decentralisation of investments away from the Melbourne Metro and CBD,” he added.
“Over the last 45 days there have been some excellent results in the area confirming that things are alive and well in the commercial – namely retail – property market.
“There is limited stock available. Ray White is putting considerable investment and emphasis on development of the Asian strategy… We now have the tools and are able to create competition from the Asian buyer group and local markets. It is allowing for successful off market sales like this to take place,” Trickey concluded.
Property Review
