Tenant snares Glen Eira shop from landlord
A tenant who three years ago leased one of the more central stores in the Koornang Road, Carnegie, retail strip, has bought it from the landlord.
The long-time ex-Westpac at #97-99 fetched $4.075 million at auction contested with five other suitors.
Based on the rent the operator of Indian mini-mart MVJ paid, the result reflects a 4.4 per cent net passing yield.
The rental agreement was due to expire in 2030 or 2043 with options.
On 462 square metres zoned Commercial 1, giving it residential development upside, the property neighbours Australia Post and Woolworths – abutting the latter’s car park – less than 200 metres from the suburb’s train station. It contains 350 sqm.
Gross Waddell ICR’s Glenn Ye and Danny Clark with Burgess Rawson’s Zomart He and Rick Jacobson represented the vendor who paid $3.24m in 2013 (story continues below).
The deal comes three months since we reported an occupier outlaid $2.24m – reflecting a low 3.9pc yield – for an Essendon property they rented for five years.
Over the past 24 months, owners of the Chemist Warehouse business have also been active buyers of High Street style stores, some rented to the pharmacy, others, it is speculated, for it to move into.
This spending spree included in February, an amalgamation in Brighton’s Church Street costing nearly $10m – a 3.6pc net passing yield.
Carnegie is 12 kilometres south east of Melbourne’s CBD.
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