Strong bidding for King Edward Road property auctioned by Colliers.
Perth investors paid $2.75 million for a leased Osborne Park showroom that was auctioned by Colliers International.
With leased properties in short supply, there was strong bidding for the showroom which was sold with a passing yield of 6.13 per cent.
The 1050sqm showroom occupies a 2000sqm site on the corner of King Edward Road and Carbon Court and is leased to a golfing retailer.
Colliers International selling agents Stephen Baker and Raj Singh said the chance to buy an Osborne Park property with a long-standing tenant generated a 50-strong crowd at the auction.
“Bids came in from four investors who were competing for this asset before it was secured by the two private buyers,” Mr Baker said.
The property is leased to an owner-operator of Divots Golf Services, a franchisee of Drummond Golf, Australia’s biggest golfing retailer.
“The sale price shows that even though we are in a slower market, there is still strong demand for leased investment property,” Mr Singh said.
“Osborne Park started as an industrial area but its transition to a busy, inner-metropolitan commercial centre has made it a sought-after location that is tightly held by investors.”
The property at 15 King Edward Road includes a partitioned 72sqm office with a boardroom and staff facilities. It also has a courtyard and a mezzanine storage area.
The showroom has onsite parking and its warehouse can be accessed from Carbon Court.
Mr Baker said the property was zoned development and was inside the Stirling City Centre Precinct.
The auctioneer was Colliers International Director Residential Sales and Marketing Wayne Chorley.