This article is from the Australian Property Journal archive
A RETAIL property in Centre Rd Bentleigh in Melbourne's south-east has sold for $5.505 million by agents Fitzroys, setting a new record for an individual transaction for the retail strip.
Fitzroys has sold two prime shops along the Centre Rd Bentleigh retail strip.
The first deal, 431 Centre Rd Bentleigh, is a freehold tenanted by the ANZ Bank and the Bentleigh Fresh Fruit Market was sold after competitive bidding for $5.505 million, reflecting a passing yield of 7%.
Fitzroys director David Bourke said strong interest was generated throughout the marketing campaign and this culminated with seven individual bidders competing for the asset at the auction.
The sale is the highest individual sale in Centre Rd Bentleigh and surpasses the former Origin Energy site that was sold for $3.6 million some two years ago.
The property was subject to a five-year lease to the ANZ Bank, returning $263,000 whilst the fruit shop was offered with a five-year lease commencing April 2009. Both have been long standing tenants within the 952 sqm building, which abuts a large Council car park and Coles supermarket to the rear.
Fitzroys also sold another property at 514 Centre Rd Bentleigh for $930,000, reflecting an initial yield of 5.1%. A menswear retailer has been operating out of the premises for the last 26 years.
Chris Kombi said the cut in interest rates and the prospect for further decreases has renewed interest from investors and self-managed superannuation funds for secure well-located retail assets.
Fitzroys will be offering the two-storey shop and dwelling at 441 Centre Rd Bentleigh for sale by executors auction on Friday, 23 November at 1pm on site. The ground floor shop of 70 sqm approx is offered with vacant possession and the first floor, featuring an immaculate one-bedroom apartment, is returning $14,604 per annum.
Property Review