Tight 5.5% yield as new Ribs & Burgers Hawthorn retail property sold

A Melbourne based private investor has paid $2.06 million on a tight 5.5% yield for a strata retail property at Hawthorn in Melbourne’s inner eastern suburbs.

In a deal brokered by Savills Australia, 862 Glenferrie Road is part of the newly completed Emblem Apartment building comprising 92 luxury apartments.

The retail space was sold subject to a new 10 year lease with five year options to restaurant chain, Ribs & Burgers, at $113,300 per annum net.

Selling agent, Savills’ director, Nick Peden, who brokered the deal with Jesse Radisich, said the marketing campaign attracted prospective purchasers drawn to the security of the long term lease to a national tenant, the quality of the building, and the location in a popular retail strip.

He said the property also offered potentially significant depreciation benefits.