Local buyer beats Hong Kong raider to Toorak shop
A fly-in Hong Kong investor swooping on a Toorak shop has been pipped at the post.
The buyer who flew in just for the auction at 481 Toorak Rd was defeated by a local investor who splashed a whopping $8.7 million on the Vintage Cellars outlet.
In the heart of Melbourne’s wealthiest suburb, the prime retail freehold investment drew phenomenal interest while it was on the market.
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Teska Carson’s Luke Bisset says the auction drew a crowd of about 100 people, including three bidders.
“Inquiry was strong right through the campaign and that was reflected in a big crowd including an offshore contingent that very nearly took the prize,’’ he says.
Aggressive bidding pushed the price to more than $20,000 a square metre of land.
This was a great result for a potential-packed property in a coveted location with a blue chip tenant, Bisset says.
The double-storey 420sqm building on a 422sqm block is in a commercial zone in Toorak Village, which has more than 270 businesses including fashion boutiques, cafes, hair and beauty salons, and medical and professional services.
The building’s ground floor contains the retail outlet, while the first floor is used for taste testing and also board and staff meetings.
Sold subject to a five-year lease to Vintage Cellars, a subsidiary of the Coles Group, the property generates a rental of $362,305 a year.
Teska Carson’s Michael Ludski says the secure lease to a blue chip tenant, first rate access and exposure, and a public carpark also attracted buyers.
“It really did tick all the boxes of a premium investment property,’’ he says.
The nearby South Yarra train station, earmarked for a $12 million overhaul, was also a drawcard as it is the busiest station outside of the CBD with 32,000 people using it daily.
“That is a fair indication of just how much growth there has been in a suburb long touted as one of Melbourne’s most liveable,” Ludski says.
“The local retail sector also thrives on the back of a predominantly young and affluent demographic.”
This article from the Herald Sun originally appeared as “Hong Kong investor pipped at the post in Toorak Village”.