Shops Fetch $11 Million
Leased to a variety of tenants including a Foodworks supermarket, Cellarbrations bottle shop and Amcal pharmacy, the asset returns annual rent of $436,437 and sold on a low yield of 3.9 per cent.
Stephen Gorman, managing director of Gorman Commercial, said “the new owner, an investor, has no medium or long-term plans to build into the valuable airspace.
However, the site’s redevelopment potential was a reason it sold for such a healthy price.
Mr Gorman speculates the asset was worth about $7 million if offered five years ago when the concept of suburban apartment living was even more in its infancy.
“Investors have recognised the potential for mixed-use developments in the suburbs, which in contributing to a recent sharpening of yields,” Mr Gorman said.
The shops are adjacent to a new Aldi supermarket and across the road from the large ex-Greythorn Motors service centre.