This article is from the Australian Property Journal archive
ONE of two securely leased retail investments in the College Square project at 800 Swanston Street, Melbourne has sold before auction by Kliger Wood.
The second property passed in and is now for private sale.
The first property which sold, is occupied by Melbourne University Optometrists on a new five year lease from April this year with two further five year options, at a current annual rental of $46,800 plus GST and outgoings sold before auction to a private investor for $803,000.
Annual rental increments at 4% are provided while building depreciation benefits are also available for the 114 sqm property.
The indicative yield at the current rental is thus 5.75%.
The second investment now for private sale, is leased as licensed mini supermarket City Express which has a new 10 year lease with two further five year options commencing from April this year with annual 4% rental increases provided.
Market reviews will take place on each five year anniversary of the lease with the current rental for the 275 sqm space set at $175,500 plus GST and outgoings.
There are also building depreciation allowances available to the purchaser. With an asking price of $2.7 million the indicative yield would be 6.5%.
Kliger Wood’s selling agent Grant McKenzie said both retail investments are new facilities within the College Square building complex only one block west of Lygon Street, which with its proximity to the wider University and Carlton population has already become a bustling local activity centre almost regardless of the time of the day.
“Offered with a 10% deposit and settlement at 30 June both properties represent attractive retail investments,” McKenzie added.
Australian Property Journal
