This article is from the Australian Property Journal archive
THREE bidders from a crowd of more than 100 have pushed the price of a multi-tenanted retail investment in Melbourne’s Malvern to more than $400,000 over the vendor’s reserve.
The 569 sqm, two-storey, double-fronted building at 150-154 Glenferrie Road was sold for $6.8 million with a seven-year lease to ANZ Bank, as well as tenants Sushi Gallery and JT’s CrossFit Training Studio for a combined $311,000 per annum net.
The building sits on a 560 sqm site zoned Commercial 1, with 14 metres of frontage to Glenferrie Road and rear access to on-site parking for up to six cars.
Selling agents Matthew Feld and Michael Ludski of Teska Carson said the Reserve Bank’s move to cut interest rates, with another in the offing, has sparked a return of confidence to retail strips.
“There is no doubt that the interest cut and forecasts of more have driven renewed interest in bricks and mortar and particularly for the old favourite strip retail investments,” Feld said.
“The amount of enquiry we had on this property and the crowd it drew on the day underscored just how much confidence has returned to the market following the election, the retention of negative gearing and capital gains benefits, APRA’s easing of loan requirements, and now the rate cut,”
Ludski said the property had presented an excellent opportunity for investors to gain a foothold within the popular strip, home to national tenants including Coles, David Jones and Woolworths, and many specialty and boutique retailers.
“The property offered a great opportunity to break into that highly regarded and tightly-held market in an area which will continue to see strong capital growth on the back of continued residential and commercial development,” Ludski said.
