This article is from the Australian Property Journal archive
AN investor has purchased the local newsagency in Melbourne’s Ashburton, paying $3.5 million at auction.
The sale price for 209 High Street represented a tight 2.41% yield and marks a private family’s ownership of the asset over several decades.
It is tenanted by Ashburton Newsagency on a three-year deal until June 2019 and two three-year options, returning $84,346 per annum net plus GST with fixed annual rental increases of 3%.
The 209 sqm building has a retail area of 109 sqm and a rear services portion.
Gray Johnson’s Kevin Sheehan sold the property.
“I anticipated that the investment appeal of this Commercial 1 zoned holding would be recognised and I expected offers to fall around $2 million so for it to sell for $3.5 million this is an exceptional result,” he said.
Australian Property Journal
