This article is from the Australian Property Journal archive
A CAMBERWELL retail investment has defied Melbourne’s third lockdown and sold at auction for $7.55 million, proving pent up demand for well-located properties remains strong.
The site at 751-753 Burke Road, Camberwell, was the first prime-location retail strip asset sold at auction in the city for 2021.
The 420sqm freehold was sold to a private investor on a 4.1% yield.
The sale was negotiated by David Bourke and Chris James of Fitzroys, on behalf a family that has owned the site for 45 years.
“Well-located Melbourne retail and commercial property with strong tenancy profiles and long-term leases have become more highly-sought after during the COVID period, with investors preferring the secure income of bricks and mortar assets in the ultra-low interest rate environment,” said Bourke.
The property, over two titles sold as whole, boasts 12.2m of frontage to Burke Road, on a 465sqm Commercial 1 zoned site.
Tenant, Mountfords Shoes, has operated from the location for the full course of the vendor’s possession, and has a 6+5 year lease, with annual returns of $329,600 plus GST, with 3% increases per annum.
“Well-located property in traditionally strong shopping precincts will always be sought after by astute investors, well aware of the limited buying opportunities in these proven pockets,” said Bourke.
The campaign received more than 100 enquiries, from both local and international investors.
“Investors and land bankers recognised the historic nature of this opportunity to acquire a dominant site in the heart of one of Melbourne’s most famous shopping and lifestyle strips.
“This was reflected in the high volume of enquiry, fierce competition between multiple bidders at auction, and the strong result achieved,” added Bourke.
Similar sites in Melbourne shopping strips have recently captured the interest of investors, including the $2.74 million sale of a two-storey freehold on the Glenferrie Road shopping strip in Hawthorn for a 3.7% yield.
“This has reinforced the resilience of Melbourne’s shopping strips and enhanced the investment prospects of well-located assets,” concluded James.
