This article is from the Australian Property Journal archive
A PRIVATE investor has snapped up a High St Kew shop front leased to a pizzeria for $1.3 million on an indicative yield of 4.5%.
Gray Johnson’s Rory White sold the retail property with residence at 327 High St Kew.
The property comprises a 135 sqm building with a retail tenancy at street level and a one bedroom apartment above, along with four basement car parking spaces.
The retail component is leased to pizza chain Crust Gourmet Pizza Bar on a five-year term which commenced June 2013 plus two further five-year options. The lease rental increases at 4% annually with the current annual rental set at $43,264 plus GST with the tenant responsible for all property outgoings except Land Tax.
The apartment is currently unoccupied but the vendor offered a 12 months annual rental guarantee from the settlement date set at $15,600, to give a combined rental income of $58,864.
White said that two similar investment properties that adjoin in High Street Kew offered by the agency for auction or private sale have all sold to strong demand.
“All three including 327 High St Kew sit strategically positioned in the main High St retail precinct,” he concluded.
Australian Property Journal
