This article is from the Australian Property Journal archive
A RETAIL investment property leased to Bendigo Bank has sold at auction for $5.302 million on a sharp yield of 3.4%.
Fitzroys agents Geoff Emmett and Chris James sold the property at 164-166 Burgundy St Heidelberg in Melbourne’s north-east.
The sale price reflects a land rate of around $7,470 per sqm. The 710sqm property is anchored by Bendigo Bank and has two smaller tenancies, returning a combined $179,934.10 per annum.
James said several buyer groups fought out the auction for nearly an hour.
“The successful purchaser fought off other local and offshore investors including parties from Singapore and Hong Kong, as well as a number of development groups,” he added.
Zoned Commercial 1, the property is subject to a development overlay allowed for a development of six-to-eight levels comprising 30-plus apartments above ground floor retail.
James said the added interest and record price Fitzroys was able to generate was a direct result of marketing the property to its exclusive overseas databases, with a focus on overseas buyers, recognised by the vendor when appointing the agency.
“The attention of overseas buyers is now firmly focused on the Melbourne and Sydney commercial markets given the penalties imposed by regulators on overseas investors acquiring residential properties,” he said. “The eventual buyer was comforted by the fact that although they are an investor that now owns a bank site with a secure income, there is an opportunity at some time in the future to undertake a substantial development project on one of the suburb’s most prominent corners and in an area that increasingly embracing medium and high-density living.”
Australian Property Journal
