111 Brighton Road, cnr Milton Street, Elwood
A top-shelf result has been achieved for an Elwood corner investment with a new lease to Coles Group’s Vintage Cellars, with the successful auction held on the Tuesday ahead the federal election.
Fitzroys’ Mark Talbot and Lewis Waddell sold 111 Brighton Road, on the corner of Milton Street, for S2.79 million to local private investor.
The sale price reflected a tight net yield of 4.5%.
The property comprises a 390sqm two-level brick building incorporating an open-plan ground floor retail offering and separate first-floor three-bedroom, two-bathroom renovated apartment, on 376sqm of land with nearly 43m of combined frontage to Brighton Road and Milton Street.
Vintage Cellars, part of retail giant Coles Group, has been at the site since 2014 and recently renewed its lease for another five years, with three further terms of five years each. Coles Group is one of Australia’s largest grocery retailers with an extensive national supermarket and liquor store footprint. Vintage Cellars is currently undergoing a rebrand of its stores to trade as Liquorland, including 111 Brighton Road, Elwood.
“Our campaign generated more than 65 enquiries, which was a very strong result given the auction was being held ahead of a federal election and amid a lot of uncertainty about global trade conditions,” Talbot said.
“Investors were attracted to the lease covenant closely tied to an ASX-listed tenant, with the newly renewed secure lease generating a strong income, and Vintage Cellars set to be rebranded soon to Coles Group’s flagship liquor retailer Liquorland.
He said the corner location on a main road was also a drawcard.
“We also had interest from regional buyers looking to take advantage of the first-floor occupier opportunity in a highly desirable bayside suburb, while receiving a strong income stream from the excellent lease covenant,” Waddell added.
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