This article is from the Australian Property Journal archive
AFTER a competitive expressions of interest campaign, a freehold leased to the Commonwealth Bank has sold for the first time in 50 years.
The property at 125-127 Upper Heidelberg Road has sold for more than $5.1 million. The Ivanhoe site in Melbourne’s north-east saw multiple offers before selling to a local investor on a yield of 3.44% on the passing income.
This sale comes after Fitzroys sold the Burke Road, Camberwell home of the Commonwealth Bank for $12.06 million, at a 3.5% yield.
The Ivanhoe dual-fronted two-storey brick building, sold by Chris Kombi and Chris James of Fitzroys, is comprised of 350 sqm is leased to CBA on a 7-year lease plus options over 230 sqm ground-floor retail space.
“Prime sites in Melbourne’s established shopping strips continue to be highly sought-after. Properties in this section Upper Heidelberg Road are rarely offered to the market, and national and international investors and land bankers recognised this was a genuine generational opportunity,” said Kombi.
“Interest rates are at an historic low and the share market continues to be volatile. Investors are seeking income-producing assets with secure leases to a blue-chip tenant, primely located within an established and affluent catchments.”
The site is zoned commercial 1, with 755 sqm of property and 10.4 metres of street frontage and rear frontage to a right of way and Ivanhoe Plaza park. The Commonwealth Bank renovated the building three-years ago when they moved into site, combining two stores to suit its open-plan layout.
