Following a highly competitive on-market campaign, the Dan Murphy’s in Malvern has sold to a private Melbourne family for $21.1 million, on yield of 3.45% – reflecting the sharpest yield for a Dan Murphy’s nationally in over 5 years.
The trophy freestanding retail investment was managed exclusively by Colliers’ Directors of Retail Middle Markets Mike Crittenden and Tim McIntosh, acting on behalf of private Melbourne family who had owned the property for over 100 years.
Mike Crittenden said “The campaign received an incredible amount of interest, with in excess of 350 enquiries from offshore and interestate investors, while local private investors dominated interest with 82% of all enquiry.”
“At the end of the campaign we received in excess of $200 million in offers, with most groups involved in the final stages of the campaign being private families living locally to the Malvern area.”
The long-standing Dan Murphy’s store is located in the leafy south-eastern suburb of Malvern, just off the busy retail strip of Glenferrie Road, opposite the Coles supermarket and recently completed a major store refurbishment converting to their latest store format.
Mr McIntosh said “The sale result achieved is a strong message to the market that ultra-defensive freestanding retail investments backed by undoubted covenants, long lease tenure and attractive growth remain resilient in any market cycle.”
“The depth of competitive offers received is a reflection of the ongoing demand for strategically located metropolitan retail assets and the current lack of prime investment opportunities on market.”
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