This article is from the Australian Property Journal archive
A LOCAL investor has paid $3.93 million for a three adjoining shops on Hampton Street in Melbourne’s south-east bayside region, some $400,000 above reserve.
Teska Carson’s George Takis and Fergus Evans, in conjunction with Nichols Crowder’s James Glen and Allan Brodie, sold the property under the hammer.
The property encompasses 670 sqm and has 15 metres of street frontage.
Takis the property drew an enormous amount of enquiry based on its development and investment prospects, including a prime spot within the bayside’s largest retail strip, several long-standing tenants on short-term leases, Commercial-zoning land on three titles, low site coverage and rear access.
Developers, investors and owner-occupiers all made enquiries.
The three tenants, Elis’ Alterations, Stirling Curtains, and Beautiful Delicious, provide a combined annual net income of around $123,000. The sale price reflected a 3.12% yield.
Takis said despite headwinds impacting the retail sector, retail strip properties continued to attract a broad cross section of buyers including those looking for development opportunities.
“Retail strips keep delivering in terms of the opportunities they present for investors, developers and owner-occupiers – especially food and beverage retailers – as strips remain very popular within local communities and as continued population growth drives new residential and commercial developments and swells retail catchments.
“Buyers are also increasingly taking a perhaps more considered and longer term view of the property market.”
Evans said the area had seen significant growth in recent years with a number of medium density residential and commercial developments transforming the precinct and providing retailers with a notable increase in catchment.
“What has been an upsurge in this area’s popularity, with its easy access to Melbourne’s CBD via major arterial routes, and the beach, has driven the development of new, high-profile, residential and commercial projects that have further enhanced a much sought after lifestyle destination.”
Australian Property Journal
