Lively Colliers International auction results in once in a century sale
A trophy retail asset located within one of Melbourne’s most iconic retail shopping villages has been sold under the hammer at a hotly contested auction.
Colliers International’s Tom Noonan, Tim McIntosh and Ben Baines have sold a high profile, corner retail asset within the Maling Road Village in the discerning south-eastern suburb of Canterbury to a local private investor for $7,365,000 under the hammer.
The sale represents the first time the property at the corner of Maling and Canterbury Roads has been offered for sale in more than a century. In front of a crowd of more than 100 people, five parties – both local and offshore – competed for the opportunity to purchase the property.
“The sale price was well above reserve and represented an extremely tight yield for a core retail asset of just 4.2%” Mr Noonan said. “The sale represents the continued market appetite for premium retail investment opportunities."
Mr McIntosh said prime retail property represented a secure investment offering favourable yields and long-term security at a time when bond and interest rates were at all-time lows, volatility in equity markets continued globally and residential houses prices were at record highs across Melbourne.
“This was the first time this trophy asset, within what is arguably Melbourne’s most iconic retail shopping village, has been offered to the market in more than a century,” he said. “This sale represents only the ninth retail purchasing opportunity on Maling Road in the last decade."
The property sits on a site of 930sqm and is the trophy of the heritage protected retail strip that has traded almost unchanged since the beginning of 1900s. Originally a post office, until 1996, the property is situated at the gateway to the popular Maling Road Village retail strip.
“The tight yield of 4.2% is a reflection of the super-prime location, not only on a strong performing retail strip that experiences almost zero vacancy, but in a high income earning suburb with residents having a higher disposable income,” Mr McIntosh said.
“We fielded in excess of 150 enquiries over the five week campaign, with 20 contracts sent out. We were inundated with genuine buyers eager to acquire quality retail assets with diversified income streams and underlying land value.”