Spirited bidding from nine parties has seen a secure Melbourne shopping strip investment in Centre Road, Bentleigh, leased to ASX-listed Domino’s, deliver a supreme auction result.
Fitzroys agents Mark Talbot and Tom Fisher sold 488 Centre Road Bentleigh for $1.68 million under the hammer, on behalf of vendors that had owned the property for 36 years.
A metropolitan Melbourne-based buyer purchased the property at a sharp 3.1% net yield.
Domino’s, which has 848 stores throughout Australia and New Zealand, has a long 5+5-year lease over the property, which comprises a 141sqm double-storey building on a 200sqm property with on-site parking and rear access.
Talbot said high volumes of enquiry were received for the property from local and interstate investors based on its strong lease covenant, with a long-term agreement with an ASX-listed tenant, as well as its freehold title and attractive price point.
“The national interest, fiercely contested auction and strong result reflect the confidence shown by the market in the resilience of Melbourne’s shopping strips,” Talbot said.
“Well-located bricks and mortar assets with quality leases are even more highly sought-after during the COVID period, as well as in the ultra-low interest rate environment.
“Investors from around the country 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 and competition on auction day again showed there is a large volume of capital waiting to be deployed after few quality opportunities were made available over the past 12 months, and we expect ongoing strong demand throughout 2021.”
The property is positioned in the heart of Centre Road, which is anchored by major supermarkets, Coles, Woolworths and Aldi, and boasts a quality mix of national and local traders including Priceline, Chemist Warehouse, Sportsgirl, Bakers Delight, Sonder Bar, Miss Ruby Café as well as all major banks.
According to new Fitzroys data for its forthcoming Walk the Strip report, Centre Road has been among the best-performing shopping strips throughout the COVID period.
Fisher said the strip the major shopping precinct in the region with circa 29,500sqm of retail floor space, a status underpinned by a solid catchment area and its high accessibility via car, with a large volume of on-street and Council car parking, Bentleigh train station and multiple bus routes.
Centre Road was transformed by the Victorian government’s rail crossing removal initiative in recent years, which has enhanced pedestrian and traffic flow around the busy station and attracted additional retailers to the immediate area. Higher density developments in the pipeline will boost the immediate catchment and further underpin trade.