25/05/2012 - Top tenants earn sale
An Everton Hills retail centre has changed hands, two days after being passed in at Auction. In all five registered bidders were vying to buy the centre at Queens Rd, Everton Hills, when it went to auction in early March.
The property, which was marketed by Trent Bruce and Hudson Dale, of Raine & Horne Commercial, was passed in at $4.3 million.
Mr Bruce said they received an offer straight after the auction and started post auction negotiations, finalising a deal for $4.65 million two days later.
The sale of the two-level property which is anchored by an IGA supermarket and Blue Care, sold on a 9.5 per cent net return.
It has a net lettable area of 2022sqm and sits on a 5035sqm block.
Mr Bruce said the eventual buyer had been at the auction but was not in a position to bid.
He made an offer directly after and negotiations started from there. ‘It was quite an active auction,’ he said.
‘Basically the multi-tenanted investments are still attractive because you can diversify and spread the risk.’
Mr Bruce said there was a shortage of good sub-$5 million investment options in the market.
He said one of the big attractions of the property was the quality of the tenants and the number of car parking spaces.
There are four other tenancies in the centre, creating a good mix of service providers and retail.
‘We have definitely noticed from the start of this calendar year there is some more interest out there from buyers, without question,’ he said.
‘There is still genuine interest out there.’
Mr Bruce said there was not a lot of good quality property coming on the market at the moment.