452 & 452a Brunswick Street, Fitzroy
Strong sales results continue to roll in through Spring across Melbourne’s shopping strip investment market.
In the latest deal, Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu sold 452 & 452a Centre Road, Bentleigh prior to auction for S2.1 million to a local investor, on a sharp yield of 3.6%.
The agents were able to generate strong interest throughout the campaign that culminated in knockout bid accepted by the vendor one week before the scheduled auction day.
The property comprises a 220sqm two-level building with a brand-new lease to butcher The Lucky Pig, on a 200sqm Commercial 1-zoned site.
“Using Fitzroys’ extensive investor database and networks we were able to source strong interest from investors, and create a competitive tension that led to a very strong result prior to auction day,” Kombi said.
“This is one of the sharper yields for a true passive investment in Melbourne’s prime shopping strip market this year,” Kombi said.
“It’s another great sign of the health of the market, and comes on the back of a number of strong results. We’re seeing more investors turn to quality Melbourne shopping strip assets for security at a time of share market and residential market volatility.”
Centre Road has emerged in recent years to become one of Melbourne’s highest-performing shopping strips. According to Fitzroys’ latest Walk the Strip report, Centre Road recorded a vacancy rate of just 2.6% – one of the absolute lowest in Melbourne.
“The purchaser was a local investor who wanted to secure a freehold in the heart of the high-performing strip. They see excellent upside in strip, with minimal vacancies and both retention and introduction of quality tenants.
“Centre Road continues to prove the power of its triple-supermarket offering, which has underpinned a constant stream of shoppers from a large catchment throughout trading hours, together with the presence of all four major banks” Fisher said.
“Tenants are actively looking for spaces at strong rentals.”
Liu said, “The State Government’s level crossing removal has also made a huge impact on the strip.
“Accessibility is a key driver of trade and this has boosted Centre Road’s, which already offers plentiful on-street and Council car parking and multiple bus routes.”
The property is the sixth sold by Fitzroys on Centre Road in the last 12 months. That included 371 Centre Road, home to Aussie Home Loans, for S2.115 million – some 25% above the vendor’s reserve – and on a sharp 3.5% net yield, as well as a childcare centre site at 263-265 Centre Road for S6.7 million, on a 4.7% yield.
Fitzroys has negotiated a number of key sales across Melbourne’s shopping strips this Spring, Most recently, Fitzroys sold 342 Brunswick Street, Fitzroy, home to Blackout Lounge, to an investor for S1.85 million on a 4.6% yield, following on from the sale of 340 Brunswick Street next door to another investor, for S1.72 million on a tight 4.3% yield.
Other recent key shopping strip sales by Fitzroys have included the Specsavers and Woodfrog Bakery-tenanted 570-572 Burke Road, Camberwell for S4.88 million, well above expectations; nearby 626 Burke Roa, anchored by Frankie4 and which sold for S5.081 million – at S1 million above reserve – on a sharp 3.6% yield; the home of the Commonwealth Bank branch on Acland Street, St Kilda for S4.4 million, S300,000 beyond reserve; and 48 Church Street, Brighton, securely leased to Bed Bath N’ Table, also on a 3.6% yield.
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