Investor picks up Ashburton retail site for $1.03m

A Melbourne investor has paid $1.035 million on a 3.38 per cent yield for a retail strip property with development upside at Ashburton in Melbourne’s inner south-east via on online Teska Carson auction.

According to selling agent, Teska Carson Director George Takis, five bidders from more than 20 registered parties took part in a lively sale delivering a substantial hike above the vendor’s reserve price.  

The 403 High Street property, comprising a single level, 140 square metre, retail premises on a 235 square metre site with two street frontages, was sold subject to a five year lease currently returning $35,000 per annum net with 3 per cent annual increases.    

Mr Takis said the strong result reflected the popular and very tightly held retail strip location, the secure lease, and the development potential with exposure to High Street.

"One of the last properties we sold in this precinct had been held for 50 years, underlining just how tightly held these properties have become and how rare opportunities for investors are.

The property also offered the potential for future development which undoubtedly attracted a greater number of buyers," Mr Takis said.

He said the area had grown substantially in recent years with an expanding population contributing to a stronger retail catchment and solid capital growth prospects.  

The precinct is home to many local and national tenants, including major supermarkets, boutique retailers, and cafes and restaurants, and also benefits from direct access to public transport and easy access to the Melbourne CBD.