A private investor has paid $1.54 million on a sharp 4.67 per cent yield at auction for a securely leased commercial investment property as population growth drives several new apartment projects in the inner-eastern suburb of Richmond.
According to marketing agents, Teska Carson’s Tom Maule and Michael Ludski, four bidders from a crowd of more than 80 drove the price of the 142 Bridge Road property well past the vendor’s expectations.
"We had a very strong campaign response for this property and that was reflected in what was a particularly sharp yield," Mr Maule said.
"Purchasers realise Bridge Road is currently transforming from its retail/showroom precinct origins with a number of properties, particularly between Church Street and Punt Road, being earmarked for medium density residential developments"The very positive spin-offs would seem to be more than obvious for local retailers and their landlords and that is not lost on purchasers."According to Teska Carson research there are between 600 and 700 apartments currently in planning or under construction within the precinct. City of Yarra and ABS data confirm Richmond’s population was 31,262 in 2014 and is expected to rise 38 per cent to 43,105 by 2036.
Mr Ludski said the property, which comprises a two level Edwardian style commercial building, currently operating as a restaurant, on a 160 sqm site, zoned Commercial 1, with five metres frontage to Bridge Road and laneway access at the rear, was sold subject to a three year lease to Mister Jennings at $72,100 per annum.