This article is from the Australian Property Journal archive
A RETAIL property investment at Bentleigh in Melbourne's south-east has changed hands for first time in 35 years, selling at auction for $2.4 million on a 3.5% yield, $600,000 above the reserve.
Located 395 Centre Rd Bentleigh, the 186 sqm property has been trading as a newsagency for the past 25 years. Zoned Commercial 1, it was sold with a new 5+5+5-year lease returning $85,000 per annum plus outgoings and GST.
Fitzroys senior associate Mark Talbot said it was the first time the property had been offered for sale in 35 years by the Corke family.
He added that the sale campaign saw strong interest from local investors and fierce competition between seven bidders on auction day, pushing the sale price to a staggering $600,000 above the reserve.
A private investor purchased the property, with the sale price reflecting a sale yield of 3.5%.
“The auction campaign generated a remarkable level of interest which far exceeded his expectations, with close to 100 separate buyers making enquiries.
“The strong enquiry was due in part to the rare opportunity to acquire a Bentleigh freehold investment situated in the prime retail precinct of Centre Rd,” he continued.
Talbot pointed out that that the last sale in this precinct of Centre Rd was the CBA branch in 2002.
He added the yield of 3.5% was more typical of properties he has transacted in some of Bayside’s premier shopping strips such as Hampton St Hampton, Bay St Brighton and the highly sought after Church St Brighton strip.
Late last year, Talbot sold 416 Hampton St Hampton and 411 Hampton St Hampton for $1.5 million $1.6 million respectively, each reflecting a sub-4% yield when fully leased.
Australian Property Journal