Colliers International lists Heathmont convenience store site with expectations of $2.5million-plus
Investors are expected to compete at auction for the opportunity to add a high-performing 7-Eleven to their portfolio.
The Heathmont convenience store on the corner of Canterbury Road and Campbell Street is for sale through Colliers International’s Jeremy Gruzewski, Dorothy He and Ben Baines, with expectations of more than $2.5million.
Fully leased to the 7-Eleven franchise on a 10-year term until July 2021, with one five-year option to renew, the 1,091sqm property takes a rental income of about $115,755.30 per annum, with an annual increase of three per cent.
Ms He said she had already received strong interest from Melbourne-based investors wanting to shift their focus to commercial assets.
“The retail property market in Melbourne’s outer-eastern suburbs has traditionally been viewed as a natural fit for many local investors, who look for secure and consistent investment returns,” she said.
“With historically low interest rates and a lack of attractive alternate options, yield-chasers are still looking favourably into commercial properties that deliver stable income streams.
“What we have found is that many enquiring investors are long-time locals who know the area extremely well. Some of them were even born and brought up here and therefore see the value of getting a foothold in an already tightly held market.”
Ms He said developers had also expressed interest in the property, with the initial intention to landbank and the long-term view to redevelop.
“Situated on a prime intersection within the vibrant Heathmont retail village, the property presents buyers with versatile future upside opportunities,” she said.
“Its general residential zoning is being proposed for change into mixed-use zoning under the Heathmont Neighbourhood Activity Centre Structure Plan, which is expected to open up wider possibilities.”
The property will go to auction on site on Thursday, May 18 at 1pm.