This article is from the Australian Property Journal archive
A RETAIL property at Hampton in Melbourne’s south east has sold for the first time in 30 years for $2.66 million, setting a new benchmark yield of 2.6%.
Fitzroys’ Mark Talbot and Tom Fisher handled the sale of the 323-325 Hampton St property, on behalf of the Read and Leung family, the previous occupiers of the pharmacy.
The fully tenanted property comprises a two-storey brick building of 243sqm, which is home to Hampton Pharmacy on the ground level and has a first floor office space. Zoned Commercial 1, it has a substantial frontage of 7.62 metres and is located in the retail heart of Hampton St.
Talbot said the pent-up demand for prime Hampton retail assets was reflected in the 100 plus enquiries and fierce competition between five bidders at auction.
He said investors keenly pursued the property in big numbers due to its burgeoning location and excellent rental growth potential. It is underpinned by a new lease to long-term tenant Hampton Pharmacy of three years with options that includes annual reviews, and market reviews at option.
“The area is attracting a younger demographic moving out of the affluent suburbs of Brighton and Beaumaris along the bay, catered for further by a number of medium and high density residential projects in the immediate vicinity of the strip,” he said. “Trading along Hampton Street has been strengthened by the ongoing development around the strip, including the Anchorage and Lido projects just metres away from 323-325 Hampton Street.
“The result demonstrates that investors retain a strong appetite for primely-positioned retail strip properties, located in areas offering healthy growth prospects.”
This is the second sub-3% Hampton sale that Fitzroys has transacted, following the $1.4 million sale of 569 Hampton St.
Australian Property Journal
