Three Retail Strip Shops Sell

PRIVATE investor demand for suburban shops continues to surge, with three shops selling at auction for far higher than their reserves.

The Box Canyon store at 704 Burke Road in Camberwell sold for $1.71 million, on a low yield of 2.4 per cent. The property, which sold with a five-year lease, with two further five-year options, had a reserve of $1.1 million. In Doncaster East, the Baker's Delight store at 50 Jacksons Court sold for $888,000, on a yield of 3.6 per cent. The property had a reserve of $600,000.

GormanKelly director Stephen Gorman, who sold the properties with Sandro Peluso, said a lack of investment options under $2 million was resulting in stronger demand for B and C grade retail strips. In Forest Hill, a shop leased to Pulse Pharmacy sold for $962,000, about 60 per cent more than its reserve of $600,000. After more than 150 bids, the property eventually sold on a yield of 3.3 per cent. The sale was handled by Dome Commercial director Daniel Liberman.

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