Self-managed super fund investors continue to seek retail properties across Melbourne offering secure incomes and located in areas with strong growth prospects.
Glisten Hair & Beauty has a secure 5+5-year lease over the 71sqm space, returning $34,611 plus outgoings and GST with 4% annual increases.
Fisher said SMSF investors were especially prominent throughout the sale campaign, attracted to the property’s strong fundamentals.
“The property’s solid fundamentals, including a secure lease to an stablished tenant, solid return with high annual increases, and location within one of Australia’s strongest growth corridors, as well as an attractive price point made this an ideal set-and-forget investment for self-managed super fund investors.”
A broad range of investors were attracted to the tax depreciation benefits on offer, given the young age of the building, and Fisher said the campaign demonstrated buyers are being consistently drawn to retail properties located in strong growth corridors.
Fitzroys recently sold 3 Linden Tree Way, Cranbourne North for $1.295 million at a 6.3% yield, with a long 7+7-year lease to grocery business Seven Day Fresh, also to a SMSF investor.
Located at the heart of south-east Melbourne’s population boom, Cranbourne North’s population is expected to surge from 20,916 in 2016 to 30,300 by 2026, according to research house .id. The population of the City of Casey is estimated at just under 300,000, and government forecasts indicate the population will reach 375,000 by 2026.
“This will bring increased demand for the retail offering at The Avenue Town Centre and bodes well for trading prospects and rental growth,” Fisher said.
The property also benefits from its immediate surrounds, with a large on-site customer and staff car park at rear and positioned directly opposite the $25 million The Avenue Shopping Centre, anchored by a Woolworths Supermarket, BWS and Chemist Warehouse.
Fisher also said service retail, including hairdressers and beauty salons, is playing an increasing role in Melbourne’s retail landscape.
“Properties tenanted by service retailers offer a secure investment proposition, offering something that is difficult for the online world to replicate.”