This article is from the Australian Property Journal archive
A PORTFOLIO of 16 Melbourne retail properties accumulated over 70 years by the late Harry Oviss are set to go under the hammer.
The portfolio is due to be auctioned at Fitzroys’ Melbourne Retail Portfolio Auction on 23 June 2022, with the group’s Mark Talbot, Tom Fisher and Chris Kombi marketing the assets.
The freehold properties will be offered individually and anticipated to bring in a combined result of around $23 million.
“There’s a mix of sizes, uses, price points and geographical locations. We’re expecting interest from investors, value-add players, land bankers and developers,” said Talbot.
Each asset is located within established Melbourne shopping strips, such as Swan Street in Richmond, Hampton Street in Hampton and at the gateway to Koornang Road in Carnegie.
As well as Glen Huntly Road and Hawthorn Road in Caulfield, Ranelagh Drive in Mt Eliza, High Street in Preston, Alfrieda Street in St Albans; and in Sunshine.
“Many of the properties offer long-term leases in place to proven tenants while also enjoying the benefit of future value-add potential,” added Talbot.
Most of the properties include secure five plus five-year leases, with several of the assets being offered with rare 5% annual increases.
“Well-located commercial property with long-term leases and sizeable annual increases like these are considered to present a more secure investment and safer place to put money in the current climate, even with further interest rate rises expected,” said Talbot.
While tenants in the occupied properties include eateries, take-away food offerings and service retailers, some are being offered either with vacant possession or with short term leases.
“We’ve already received interest from a wide range of investors, from entry-level and first-time market participants to self-managed super fund buyers and more seasoned investors, all looking for secure long-term investments amid sharemarket and residential market volatility,” added Talbot.
Kombi added that he expects investors, value-add players, land bankers and developers to demonstrate interest in the assets due to their location on well-performing and COVID-resilient shopping strips, while Fisher noted the portfolio offers investors a good opportunity to snap up a secure asset before the close of the financial year.
