Footscray’s Spice ‘n’ Grocery has sold at auction to a local private investor for $2.65 million.
Savills Australia sells Footscray grocer on sharp 2.21 percent yield
Footscray’s Spice ‘n’ Grocery has sold at auction to a local private investor for $2.65 million.
More than 100 people turned up to watch four bidders contest for the 390sq m property at 49-51 Leeds Street, with bidding starting at $1.7 million.
Savills Australia’s Julian Heatherich and Mark Stafford brokered the deal in conjunction with Trimson Partners’ John Verduci and Philip Mazzella.
“Selling for 47 percent above reserve, this was a particularly hotly contested auction, demonstrating the burgeoning demand for retail assets in Melbourne’s inner-west,” Mr Heatherich said.
“The 2.21 percent yield also highlights buyer appetite.”
Mr Heatherich said the buyer recognised the value of the current six-year lease, which is returning $58,710sq m.
Mr Stafford said the property presented “significant future upside” based on its Activity Centre zoning and location beside the Footscray Market and 100 metres from the train station.