The sale price equates to an average yield of about 5.5 per cent per shop, based on current market retail rents. This compares to an average yield of around 5 per cent for retail shops in Melbourne’s suburban strips, which are typically more hotly contested by investors.
Bourskope’s new Mt Eliza centre will include 452 square metres of retail space, 400 square metres of offices and 33 car parks. Opposite the Canadian Bay Safeway complex, the centre is expected to be open by June.
Bourskope managing director Nicholas Bourke said he is pleased with the project, which is the developer’s first foray into retail construction. He said the company would consider developing a similar mixed use office retail building if the opportunity came up again.
Its major commercial projects include an industrial park in Campbellfield and a major recreation facility to be built on a former dairy in Melton South.