Investors turn to Mitcham shops over apartments

Two shops on busy Colombo St, Mitcham are up for sale.

Two established Mitcham shops with a combined annual income of over $100,000 have been plated up for the market.

Collector’s Coffee House and Elate Kitchen at 1 Colombo St, right alongside Mitcham Station, both go under the hammer at 12.30pm on July 17.

The cafe, which is in shop one, with annual income of $35,700, is expected to sell for $500,000, while Elate Kitchen — a Chinese restaurant at shop two with income of $75,554, is attracting offers above $1 million, according to CBRE retail investment agent Nic Hage.

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“They’re investments you can lock away in your super fund and — as the price range is attractive — people are comparing it to an investment apartment,” Hage said.

Collector’s Coffee House is expected to sell for around $500,000.

The cafe has an annual income of $35,700.

Recently renewed five-year leases at both shops had appealed to buyers that hadn’t previously considered commercial listings, Hage says.

“A lot of them are the same residential buyers. With the volatility in the market, this feels like a safer option, your lease is longer than residential,” he says.

Colombo St is a busy thoroughfare with access between the train station’s carpark and Whitehorse Rd.

Elate Kitchen is attracting interest around the $1 million mark.

Its annual income is just above $75,000.

“They’re going to be attractive for investors looking for low-maintenance, set-and-forget offerings with a huge amount of convenience,” Hage says.

“There’s 700 free car parks and 3000 people walking through daily.”

Hage says the listings areboth being sold by the same vendor, who planned to retire.

This article from Leader Newspapers originally appeared as “Mitcham shops: residential buyers turn to commercial listings”.