This article is from the Australian Property Journal archive
REAL estate agents Malcolms has sold a veterinary clinic at Mentone in Melbourne's south at auction to a private investor for $681,000 on a yield of 5.9%.
Located at 32 Lower Dandenong Road Mentone, the property is leased to the Kingston Veterinary Hospital and immediately adjoins the local Thrift Park shopping centre.
The current occupancy by the three partner practice is under a five year lease which commenced in April 2006 which has a current annual rental payable of $40,272 plus GST and outgoings.
There are fixed annual rental increases provided at 3%, plus a market review on the exercise of future options given under the lease.
Significantly these include up to five further five year terms giving an indicative future occupancy of over 25 years without including the remaining portion of the existing lease.
Malcolms director Frank Hellier said the sale price comfortably topped expectations as there were expectations it would sell between $550,000 to $605,000.
Australian Property Journal
