Melbourne, 30 July 2014 – A flurry of residential developments earmarked for South Melbourne is underpinning increased demand for retail investment properties in the area.
CBRE’s Ed Wright, Josh Rutman and Tom Tuxworth recently negotiated the sale of shops 2 & 3, 71 Coventry Street, to a local investor for $1.63 million.
The properties, which cover a total area of 178sqm, are currently leased to Asian restaurant, Ayam Chef, with a current net income of $160,000 per annum.
Mr Wright said the two ground floor retail properties were purchased via an off market campaign, following a strong sales result of $760,000 for the adjoining shop 1 earlier this year.
The properties were marketed on behalf of property developer, Flagship Property, and are located on the ground floor of the 237 residential apartment complex, Sunday.
“There are several residential developments slated for South Melbourne, which is spurring strong investor confidence for well leased retail investment properties in the area,” Mr Wright said.
“The lack of genuine buyer opportunities in the Melbourne CBD is also forcing local and offshore investors to look for City Fringe retail opportunities, which is driving strong competition”.