This article is from the Australian Property Journal archive
A LOCAL investor has purchased a Vintage Cellars outlet in upmarket Toorak for $8.7 million, nudging out a Hong Kong-based investor who had flown into Melbourne for the auction.
Teska Carson’s Luke Bisset and Michael Ludski, in conjunction with Allard Shelton’s Joseph Walton, Michael Ryan and James Gregson, sold the Toorak Village property at a tight 4.1% yield.
Three buyers competed in front of a crowd of around 100, while the sale price achieved a land rate of more than $20,000 per sqm.
The two-level building of 420 sqm has ground floor retail and a first floor that is used for board meetings and taste testing, and is on a 422 sqm site zoned Commercial 1.
“This was a great result for a property which had much to offer investors in a coveted retail and commercial location with a blue chip tenant,” Bisset said.
The property has a five-year lease to Vintage Cellars, a subsidiary of ASX-listed Coles Group Ltd, and returns $362,305 per annum with annual increases.
Ludski said the property presented a list of exceptional investment credentials including a highly regarded retail and commercial location within Melbourne’s wealthiest suburb, with a secure lease to a blue chip tenant and first rate access and exposure via Toorak Road frontage and a public car park.
He said nearby South Yarra station, earmarked for a $12 million overhaul, was the busiest station outside of the CBD with 32,000 people using it daily.
“The local retail sector also thrives on the back of a predominantly young and affluent demographic which boasts an average weekly income well above that of Greater Melbourne with per capita retail spending also significantly above the Melbourne average,”
Toorak Village has more than 270 shops and businesses including fashion boutiques, cafes, fine dining, hair and beauty salons, and medical and professional services.
Australian Property Journal