An investment opportunity at Preston in Melbourne’s north has been sold by Ray White Commercial Glen Waverley for $5.9 million.
The approximately 1,875 square metre site with development upside at 605-617 High Street, Preston, currently holds a high profile nationally branded tenant in Nissan Australia. It was sold post auction to a local investor by Ray White Commercial Glen Waverley’s Ryan Trickey and Ben Ainsworth.
Mr Ainsworth said the High Street property has genuine future development potential and is zoned ‘Priority Development Zone Schedule 2 (PDZ2)’.
“There is land with surrounding developments approved for up to six levels and local council guidelines indicate four levels, subject to approval,” he said.
“This is also a great location within walking distance to trains, trams and buses, while Northland Shopping Centre is an approximately five-minute drive away.”
Mr Trickey said the property was sold on behalf of private owners for a yield of 5.3 per cent.
“This was an exceptional opportunity to secure an investment with a long term, nationally branded tenant with strong net income of approximately $318,000 per annum,” he said.
“With a lease term of five years starting in June 2015 and one option of five years, there was great security on offer for any purchaser, but with the attraction to add value moving forward as the property has great frontage and future height potential.”
Mr Trickey said enthusiasm remains strong for investments with future development potential.
“The continuing low interest rate environment is allowing income to cover expenses with the realisation of capital later once the highest and best use is achieved,” he said.
“Buyers are happy to wait to see their money and don’t need instant gratification which is allowing for sharper yielding results.”