This article is from the Australian Property Journal archive
FIERCE competition at auction for a retail property in Melbourne’s blue ribbon suburb of Toorak has seen the home of international fashion design retailer Grace Boutique sell for $3.75 million, $1.5 million above reserve.
An investor won out for the 595 Malvern Road property, positioned within the popular Hawksburn Village retail precinct, with the sale price reflecting a passing yield of 1.8%.
Teska Carson’s Michael Taylor and Tom Maule sold the property, which attracted a crowd of around 100 people.
Zoned Commercial 1, the property has a 132 sqm single-level retail premises with office space and a large rear courtyard on a 337 sqm site.
It sold with a five-year lease returning $68,936 per annum.
Taylor said the result reflected the ongoing strength of the market for strip retail investments and the shortage of stock.
“Strip retail has never really been off the investment agenda, but currently it’s attracting perhaps more than its fair share of interest and that’s due to a combination of factors including the dearth of quality alternative investments.
“At the same time we have a shortage of stock which has intensified demand for available properties resulting in ever tightening yields,” he said.
Australian Property Journal
