Magnificent Mornington Retail Investment Sells For $2.1m

Posted on 26th October 2022

The Mornington Peninsula continues to attract huge attention from investors, with yet another strong retail property sale on the Main Street shopping strip.

In the latest deal, Fitzroys’ Tom Fisher and David Bourke sold 127 Main Street for $2.1 million, on a high building rate of $15,555 per sqm.

The well-presented 135sqm ground-floor shop has a wide frontage of over seven metres and is leased to national operator Taking Shape on a brand-new 5-year lease returning $100,775 per annum plus outgoings.

“Main Street, Mornington has become widely recognised as a thriving coastal precinct that has outperformed many of its peers across the Mornington Peninsula and Melbourne in recent years,” Fisher said.

“Its minimal vacancies, quality mix of national and local tenants and the surging coastal residential catchment has created a huge spike in interest from investors locally and across the country.

“Coastal locations have attracted people looking for a change of scenery, enabled further by flexible working arrangements, and have attracted a huge share of Australians’ tourism spend.”

The Main Street property is surrounded by a plethora of national and local traders including Coles, Woolworths, Country Road, Cotton On, Bed Bath ’N’ Table, Sportsgirl, Gazman, The Grand Hotel and major banks.

Interest came from local and interstate investors and self-managed super funds.

This is the third result in a few months in which multiple bidders have competed fiercely at auction for a Main Street, Mornington property. Fitzroys recently sold the strata-titled 125 Main Street property for $2.62 million under the hammer, at a very sharp 3.3% yield with a secure 5+5-year lease to established tenant Home in the Hamptons, as well as 85 Main Street, home to ASX-listed Bendigo Bank, for $2.8 million and at 3.6%.

Bourke said investors continue to throw their weight behind bricks and mortar investments.

“Well-located, well-leased properties offer consistent cash flows and are considered a secure investment amid sharemarket and residential market volatility.”