Humble newsagency sells on incredible 1.3% yield
A small news agency opposite Holmesglen TAFE in suburban Melbourne has fetched an astonishing $1.228 million, sending the yield plummeting to just 1.3%.
An investor secured the Chadstone retail property prior to auction, after agents received more than 100 enquiries and five offers to buy it.
Price was clearly no object for the buyer, who will initially earn just $17,000 in annual rent, before a market review that could see the rent increased.
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Ray White Commercial Oakleigh’s Ryan Amler sold the 102sqm property at 637 Warrigal Rd on behalf of its private owner. It has been leased as a newsagency for more than 30 years.
“We had five offers submitted prior to auction and the vendor agreed to terms,” Amler says.
“The yield was approximately 1.3% and there is potential to increase rent after the next market review as it was well below market rental rate.”
Amler says the property’s position ensured guaranteed and ongoing clientele and a steady stream of passing traffic.
“This outstanding retail investment is opposite Holmesglen TAFE and is in a tightly held retail strip among an array of food outlets and businesses,” he says.
“The property is well serviced and accessible via Warrigal Rd and the Monash M1 Freeway only a short drive away. The property is adjacent to Holmesglen Train Station on the Glen Waverley line and also accessible by various bus routes.”