Melbourne, 08 December 2014 – A retail investment property occupied by nursery retailer Baby Bunting has sold for $6.751 million following a competitive expression of interest sales campaign handled exclusively by CBRE Victorian Retail Investments division.
Located at 291-311 Burwood Road in Hawthorn, the 1,536sqm ground floor space is leased to Baby Bunting for seven years, generating a gross income of $514,560 per annum.
CBRE’s Mark Wizel, Rorey James and Justin Dowers negotiated the sale on behalf of leading Melbourne developer Caydon via a Public Expression of Interest campaign.
Mr Wizel said the property’s location, secure tenancy and the lack of available investment grade assets for sale were key selling drawcards.
“CBRE received more than 85 enquiries throughout the campaign, from a multitude of local, interstate and offshore investors keen to capitalise on record low interest rate environment,” Mr Wizel said.
“The property was sold to a local private investor for $6.715 million, representing a strong passing yield and an amount well above the vendor’s reserve.”
Mr James commented on the sale: “Given the property’s strata titled nature and investment quantum, the initial yield on the property was widely regarded as low; however this is a clear sign that active buyers in the market recognise what is needed to secure a high quality long leased Melbourne strip retail property.”
“Although we are continuing to see strong demand from the off shore Asian market, this sale depicts a 2014 resurgence from local investors looking for quality retail properties and wishing to capitalize on the favourable funding conditions.”
Situated less than six kilometres from the Melbourne CBD, the property is located in close proximity to some of Melbourne’s most affluent suburbs including Hawthorn, Camberwell and Kew.
The sale adds to the $225 million of retail investment sales completed by CBRE Victorian Retail Investments since October 10, 2014.
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