This article is from the Australian Property Journal archive
A RETAIL property leased to a food retailer at Brighton in Melbourne’s bayside has sold for $1.9 million.
CBRE’s Rorey James said investment appetite for strip retail properties is not slowing after he negotiated the sale of 370 Bay St, a 233 sqm ground floor retail shop securely leased to Burger Edge. The property provides an annual income of approximately $50,000 p.a. with short term upside.
“This result is yet another example of the strong market confidence towards well located strip retail properties, which is being further enhanced by the low interest rate environment, improved consumer sentiment and upturn in business confidence,” James said.
In another deal, an owner occupier secured Shop 3, 74 Doncaster Rd in North Balwyn for $700,000. The 62 sqm retail property was sold by CBRE’s Sandro Peluso.
“The building rate was equivalent to more than $11,000 per sqm, indicating the strength of demand shown by these owner occupiers looking to secure retail space in Melbourne’s eastern suburbs,” Peluso said.
The two transactions follow the recent $16.7 million sale of a Richmond development site, which was sold on a tight yield of 1.5%. The 79-89 Swan St, the 1,540 sqm site comprises a 2,057 sqm two-storey building accommodating 10 shops and eight office suites with shared amenities.
The property was hotly contested by seven bidders, with 74 bids driving the price more than $4.2 million above reserve to the final bid of $16.7 million – representing a rate of just under $11,000 per sqm.
“In a trend that is continuing to gain more traction in 2015, the property was sold to a local buyer, who managed to outbid several activity offshore and local groups,” CBRE director Mark Wizel said.
“This is a clear indication of the market’s ongoing appetite for quality real estate assets in premium locations, whether they are for development or investment.” Wizel concluded.
Australian Property Journal