Five bidders have fought it out at a hotly contested auction for a retail freehold with a secure lease to popular ice cream store chain Augustus Gelatery, as investors continue to put their faith in bricks-and-mortar assets.
A local investor purchased 1228 Burwood Highway, Upper Ferntree Gully for $1.31 million, on a tight 4.5% yield.
Fitzroys’ Chris Kombi and Tom Fisher sold the property on behalf of a private vendor after generating more than 90 enquiries during the campaign.
The property comprises a fully-refurbished 140sqm building on a generous 249sqm corner landholding plus rear access off Rose Street, with corner frontage of 47 metres and positioned opposite Upper Ferntree Gully train station.
Augustus Gelatery, which has a network of 25 independently operated stores across Victoria, signed a 7+7+7-year lease from September 2022 at a rental of $60,000 per annum plus outgoings and GST.
“The purchaser was after a long-term secure investment at a time of volatility in the sharemarket and residential market. The annuity-style income stream from a long lease to a quality tenant is hugely attractive,” Fisher said.
“We’ve seen yet another hotly contested auction and huge depth of enquiry during a campaign, which shows investors are still putting their faith in bricks-and-mortar investments.”
Kombi said, “Investors also recognised the excellent long-term underlying land value of the property, which is on a highly-exposed corner site with future upside located opposite Upper Ferntree Gully train station and within a surging local catchment”.
The property is surrounded numerous recognised local traders including Wok'd, Baker's Delight, Australia Post, Royal Hotel, The property is surrounded numerous recognised local traders including Wok'd, Baker's Delight, Australia Post, Royal Hotel, Hahndorf's Fine Chocolates, Brew’d Café, Quarry Bakehouse and Maxi Foods, and offers convenient access to major arterial roads providing excellent connectivity to nearby suburbs and Melbourne's CBD.