Savills News

North Melbourne retail draws a crowd at auction

Savills has just sold two modern retail investment properties at highly competitive auctions, in the process setting new benchmarks for the value of inner suburban strata retail. 

The properties, Shops 3 and 5 at 33 Flemington Road, North Melbourne sold at auction for a combined price of $3,271,000.

Shop 5 is 120sq m and was sold to a Chinese investor for $1.66 million on a 4.38% yield and is leased to ASX listed tenant ‘Domino’s Pizza’ on a 8+5+5 year lease from October 2017, returning $72,800 per annum.

Shop 3 is 127sq m and was sold to a local investor for $1.611 million on a 4.82% yield and is leased to ‘The Rice Cooker’ on a 5+5 year lease from July 2016, returning $77,600 per annum.

Jesse Radisich, Yvonne Zhou, Clinton Baxter and Tim Carr of Savills sold the properties and said the two high quality retail assets attracted strong and competitive bidding from a multitude of buyers, including phone-bidding from interstate and overseas investors, which saw the prices soar well beyond the vendor’s expectations.

Clinton Baxter, State Director at Savills said “The high number of bidders and exceptionally low yields achieved is a clear demonstration of investor confidence in well located suburban retail properties, something that is particularly apparent after recent cuts to official interest rates."

Learn more about Savills Metropolitan & Regional Sales.

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