Shops Fetch $11 Million

A Chinese family has paid $11.1 million for a collection of Balwyn North shops accrued over 55 years by a Greek businessman who started a corner milk bar, then slowly bought up 11 neighbouring tenancies, in part to accomodate his expanding business. In the pocket of Greythorn, the properties cover 1,717 square metres of land and include sites at  293-309 Doncaster Road, and another in 2 and 2A Tannock Street.

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.