- The shopping strip asset sold for $6.8M, $1M above reserve
- First time the property has been on the market in 44 years
- Equivalent yield is 3.8%
Investors have recognised the resilience of Melbourne’s shopping strips in bold fashion, with the remarkable $6.8 million auction sale of a prime Burke Road, Camberwell asset – $1 million above the reserve, and at a sharp 3.8% yield.
Fitzroys agents Chris Kombi and Chris James sold 580 Burke Road, Camberwell on behalf of private owners that have held the property since 1977.
The dual-fronted 344 square metre freehold is located in the heart of the famous shopping strip, on a 361sqm site zoned Commercial 1, and with two street frontages to both Burke Road and Market Place.
National apparel tenant Witchery, part of Country Road Group, has a long lease over the property that it recently extended.
Multiple bidders competed at the auction following a campaign that generated strong local and international enquiry, and a local investor emerged successful as Melbourne’s retail and commercial property market passed another test.
“This result shows the market has undoubtedly recognised the resilience shown by Melbourne’s shopping strips over the past 12 months.”
“The security of well-located bricks and mortar assets with quality leases has become even more highly sought-after during the COVID period, as well as in the ultra-low interest rate environment.
Chris Kombi, Fitzroys agent
“Investors continue to identify well-located Melbourne retail and commercial property with strong tenancy profiles and long-term leases as ideal assets.
“The depth of enquiry again showed there is a large volume of capital waiting to be deployed, after few high-quality properties were offered for sale over the past 12 months.
We expect more investors will be seeking these types of opportunities in 2021.”
Fitzroys are also marketing 634 Burke Road, which will be offered for sale by auction on Friday, 28 May. National retailer Mecca Cosmetica occupies the space fronting Burke Road with Spring Massage Therapy at the rear, for a combined return of $230,809 per annum.