Melbourne’s inner-eastern suburbs have proven their widespread reputation as a blue-chip retail investment proposition, with a Vietnam-based investor purchasing a shop and dwelling within Cotham Village in Kew.
Zoned Commercial 1, the property is on a generous 260sqm site and has a prominent double-storey freehold of 200sqm, with a fully self-contained ground floor retail and a separately accessible three-bedroom residence, and two on-site parking spaces.
The property sold at a tight 3.9% net yield, and has a new lease to Hair by Chesika on the ground for and a monthly lease over the residence.
James said the campaign generated enquiry from local, interstate and offshore investors, and that the acquisition had just received approval from the Foreign Investment Review Board.
“Investors continue to look for well-located, securely-leased Melbourne shopping strip properties, which present solid income-producing opportunities in a low interest rate environment.”
“Retail assets with dual income streams continue to provide excellent value for investors.”
Ceppi said the property offered some the most sought-after fundamentals in Melbourne retail property.
“The asset was offered with a new lease and is positioned within the popular Cotham Village retail and commercial hub, servicing the blue-ribbon suburb of Kew and the affluent wider catchments of Hawthorn and Balwyn in the inner-east.”
“Kew is also a well-regarded commercial office location, helped by the increasing popularity of medium-density living throughout Boroondara. This will continue to enhance the local catchment of residents and workers, increasing pedestrian traffic and demand for retail shops, services, and food and beverage offerings.”
According to Fitzroys’ Walk the Strip report, the proportion of service retail tenants across Melbourne’s shopping strips is growing, given it is hard for online retailing to compete with their offering.
Cotham Village provides a wide range of retail services including numerous local traders, restaurants, cafés and bars including Cru Wine Bar, Centonove and Cotham Road Pharmacy, and is well serviced by public transport with tram services operating along Cotham Road and Glenferrie Road and within close proximity to Kew Junction.
James and Ceppi sold the property on behalf of a private owner who previously operated an IT business from the premises, and the location was ideal to send children to leading Melbourne private schools nearby, including Trinity Grammar, Genazzano and Xavier College.
Throughout the inner-east, Fitzroys recently sold 947 Burke Road, Camberwell for $1.72 million, at a record land rate for the precinct of more than $17,000 per sqm and at a sharp4.3% yield.
Fitzroys has also sold the Hawthorn home of Sisko Chocolates to a local investor at a sharp 3.5% yield, for $1,357,500, and the shop and dwelling at 265 Camberwell Road, Camberwell for $1.425 million, at a tight 3% yield after more than 100 enquiries.