Melbourne building value doubles upon tenancy
A recently leased triple fronted retail investment at a busy T-intersection in Melbourne’s north west traded at auction last week for $5.05 million – more than twice the result 15 months ago when it was vacant.
The result for 475-477 Keilor Road, Niddrie, reflects a 5.45 per cent net passing yield.
Fast growing charcoal chicken chain El Jannah is on a rental agreement expiring in 2038 with a 15 year option.
Its fit out replaced a long-time Westpac branch, which shut in 2022.
On 541 sqm zoned Commercial 1, with laneway access – in one of 10 local government designated Activity Centres, serviced by a tram which runs up Matthews Avenue, it holds longer term development upside.
Vendor, Accord, paid $2.5m last June.
The buyer is a first time investor sourced from marketing agency Stonebridge’s Asia practice (story continues below).
Two other suitors bid.
Nic Hage, Rorey James and Kevin Tong were the agents.
The result reflects a record rate per sqm for both land and building on Keilor Rd they said.
Sharing the same postcode as Airport West, the suburb is about 11 kilometres from the CBD.
Six months ago we reported Woolworths acquired the precinct’s Niddrie Central shopping centre, in Essendon, following an off-market deal.
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