100+ crowd drives $6.8 million sale price at retail auction in Malvern
Three bidders from a crowd of 100 plus pushed the price of a multi-tenancy retail investment at Malvern to more than $400,000 over the vendor’s reserve at a Teska Carson auction.
According to selling agents, Teska Carson directors Matthew Feld and Michael Ludski, the RBA’s move to cut interest rates, with another in the offing, has sparked a return of confidence to retail strips.
Mr Feld said,“there is no doubt that the interest cut and forecasts of more have driven renewed interest in bricks and mortar and particularly for the old favourite strip retail investments.
“The amount of enquiry we had on this property and the crowd it drew on the day underscored just how much confidence has returned to the market following the election, the retention of negative gearing and capital gains benefits, APRA’s easing of loan requirements, and now the rate cut,’’ Mr Feld said.
Located within a tightly held retail and commercial precinct, the 150-154 Glenferrie Road property sold on a 4 per cent yield to net market rent.
The two storey, double-fronted building was sold subject to leases to ANZ Bank (7 years), Sushi Gallery, and JT’s CrossFit Training Studio, returning a combined $311,000 per annum net.
The building sits on a 560 square metre site, zoned Commercial 1, with 14 metres frontage to Glenferrie Road and rear access to on-site parking for up to six cars.
Mr Ludski said the property had presented an opportunity for investors to gain a foothold within the popular strip.
“Glenferrie Road, Malvern, is a well-known and strongly performing retail precinct, home to many national tenants including Coles, David Jones and Woolworths, and many specialty and boutique retailers.
“The property offered a great opportunity to break into that highly regarded and tightly-held market in an area which will continue to see strong capital growth on the back of continued residential and commercial development,’’ Mr Ludski concluded.
