East Retail property throughout Boroondara in Melbourne’s popular inner east continues to attract the attention of local and offshore investors, with an Auburn Village corner site the latest asset to trade strongly in the region.
Jordan Ceppi, David Bourke and Chris James of Fitzroys have just sold the high-profile 635 Burwood Road property in Hawthorn East under the hammer to a local investor for $2.525 million, following a campaign that attracted more than 80 buyer enquiries.
Four local and offshore bidders competed at auction for the asset, which traded at a sharp 4% yield. Fitzroys acted on behalf of an owner occupier, who will take up a one-year lease with the new owner.
Zoned Commercial 1, the 257sqm site comprises a two-level building with a ground floor retail and showroom space, and a separately accessed three-bedroom warehouse-style residence above.
Ceppi said the enquiry received and strong auction result reflected the confidence in the area’s revitalisation, spurred by a strong residential development pipeline.
“Auburn Village is a popular hospitality, retail and lifestyle centre, servicing the affluent inner eastern suburbs and is benefiting from the surging population of the region,” he said.
“Developments such as Camberwell Village, Hawthorn Park and others nearby have underpinned enquiry from investors, owner occupiers and tenants alike through the innereast, providing growth in the immediate catchment and boosting trade in the area."
James said commercial and residential developments have further accentuated the extended trading cycles of Melbourne’s retail strips, and added to their vibrancy.
“Significant apartments and student accommodation development have been completed close to 635 Burwood Road, with a number of further projects sites in various stages of planning and construction, adding attractive growth prospects to the catchment that is further underpinned by nearby Swinburne University, which has around 30,000 student enrolments.”
Bourke said well-located retail properties continue to be highly sought after by investors.
Fitzroys recently sold the landmark 1885 building now home to Meat & Wine Co. on the corner of Burke Road and Riversdale Road overlooking Camberwell Junction for $4.75 million, at a 4.05% yield following hot competition at auction.
Mid-year, Fitzroys sold the high-profile, double-storey 171-173 High Street building of 332sqm in Kew under the hammer for $4.175 million, at a 3.9% yield with leases to Flight Centre and Onyx homewares.
An outstanding retail investment opportunity at 1053-1055 Point Nepean Road, Rosebud will be sold by public auction next month.
Occupying a prominent location on a prime site along Rosebud’s “Golden Mile”, the property is positioned in what could be described as one of the most high-profile retail locations along Point Nepean Road," according to listing agents MP Burke Commercial.
"The Rosebud Shopping Precinct is a lively and vibrant shopping centre and the key to the Mornington Activity Centres Strategy," a spokesperson for MP Burke said.
"Well establish national retailers include Coles, Woolworths, Australia Post, Target, BWS and a variety of banking institutions including the ANZ, Westpac and CBA."
The property is 100% leased to ASX listed National Australia Bank (NAB) on a three (3) + three (3) year term with annual reviews.
According to MP Burke Commercial the property will appeal to a broad-based investor market including private individuals, developers, superannuation funds and smaller property syndicates.
MP Burke Director, Pat Burke said it was a "prime retail investment opportunity in the heart of Rosebud Shopping Centre that benefits from an exceptional location and a strong well established lease covenant.
"This property has a lot of excellent attributes," Mr Burke explaind.
“The Melbourne & Mornington Peninsula retail market continues to perform strongly particularly for assets such as 1053-1055 Point Nepean Road, Rosebud that delivers the best and most prominent position on Point Nepean Road, strong rental returns and the upside for the lucky purchaser to undertake a boutique development of the site in the years to come," he added.
The property will be auctioned on site at 12pm on Friday, 7th December.