Melbourne strip retail assets in fine locations continue to charm investors, with a classic double-fronted retail freehold in Malvern selling under the hammer for $3.02 million, at a crisp yield of just 2.68%.
It marked the first time the two double storey shops on one title, comprising longstanding tenant Allpress Antiques and the popular Milton Wine Shop, had been offered to the market in more than 50 years.
Fitzroys’ Chris Kombi, James Lockwood and Jordan Ceppi managed the sales campaign of 1425-1427 Malvern Road, Malvern, which attracted more than 110 enquiries and saw six parties competing at auction and push the sale price $420,000 beyond reserve.
Private investors traded the asset, which is on a 400sqm site with rear access off Tooronga Road and has a wide frontage of almost 11 metres.
Zoned Commercial 1, it was sold with a 5x5-year lease in place, returning approx. $81,033 per annum.
Lockwood said the Malvern Road retail and lifestyle strip was underpinned by a rapidly growing residential catchment, with numerous mediums and high density mixed-use developments in the vicinity recently completed and others at various stages of planning.
“Hospitality and retail services have subsequently benefited from the growing catchment immediately around Melbourne’s inner and middle-ring precincts," he added.
Ceppi said Malvern Road had a positive outlook for continued rental growth in the short to medium term, with a low vacancy rate and improving tenancy profile.
Investors continue to show a hefty appetite for well-located Melbourne retail strip assets, with the Glen Huntly Road, Elsternwick premises of popular Russian restaurant Nevsky snapped up for $1.5 million at auction.
Fitzroys agents Mark Talbot and Chris Kombi sold the immaculately presented 200sqm two- storey building for $200,000 above the reserve on behalf a private investor, following a campaign that received more than 80 enquiries.
The 132sqm, Commercial 1 zoned site at 476 Glen Huntly Road sold to a local private investor at a sharp 3.7% yield with a 3x3x3 year lease to Nevsky.
Kombi said the property was prominently positioned within the vibrant Glen Huntly Road shopping strip, close to Coles supermarket and the Orrong Road intersection.
Talbot said the precinct’s offering of national and well regarded local tenants and operators had benefited from numerous mixed use developments recently completed and in various stages of planning, bolstering the immediate residential catchment.
The Nevsky restaurant site is positioned diagonally opposite the 220-unit, seven-level dual-tower Coles supermarket development site.
“A large proportion of Melbourne’s rapid population growth is being accommodated in the inner and middle-suburban retail strips, generating sustained local demand – particularly for hospitality and retail services,” Talbot added.
Sentinel Property Group has made another foray into the Northern Territory with the acquisition of a commercial office building investment 3km north of the Darwin CBD for $9,347,510.
Sentinel has purchased the fully leased Arnhemica House property at 16 Parap Road, Darwin, as the latest asset for its Sentinel Regional Office Trust, which has now acquired seven properties nationally for a total of more than $200 million.
Built in 2011, Arnhemica House is the Sentinel Regional Office Trust’s third acquisition in Darwin over the past 12 months with the group spending more than $100 million in the NT capital.
The Arnhemica House acquisition follows the purchase of premium-grade commercial office building, Jacana House, in the Darwin CBD for $60.75 million in June, 2017, and the ‘CasCom’ business park in Casuarina which Sentinel purchased for $34 million in December 2016.