A tenanted investment opportunity featuring a main road service station and car wash at Vermont South in Melbourne’s east has been sold at auction for $5.36 million.
The property on a land area of approx. 2,308 sqm and building area of approx. 110 sqm at 549 Springvale Road, Vermont South, was sold to a local investor by Ray White Commercial Glen Waverley’s Ryan Trickey on behalf of Pitcher Group Pty Ltd. for a yield of 6.5 per cent.
Mr Trickey said the on-site auction attracted more than 30 people with four bidders competing for the offering which is on a long term lease and generating net rental income of approximately $350,000 per annum.
“Bidding opened at $4 million and rose in instalments of $100,000 and then $50,000 before a final increase of $10,000 secured a sale under the hammer,” he said.
“The three under bidders who are both local and international are still on the hunt for tenanted investment opportunities.”
Mr Trickey said top quality investments continue to be sought after in Melbourne's east.
“With more good quality property available than six months ago buyers are more spoilt for choice than they were in previous months,” he said.
“Ray White Commercial Glen Waverley sold 549 Springvale Road under the hammer showing a return on investment of more than 6.5 per cent - far better than bonds or term deposits.
“It’s clear that properties with good leases, strong cash flow and genuine future potential are still desirable, however, as mentioned due to supply buyers are being more cautious and attention to detail is more critical than before to ensure campaign success.”
Mr Trickey said one of the major points of the sale success was agents ensuring a full site Environmental Audit report was available so buyers could see all site details and do their due diligence then bid with confidence.
"We have found many agents of late have relied on a buoyant market to achieve results and have cut corners. They don't want to ask the tough questions from vendors to ensure that any 'would be' issues are transparent and open to discussion. Doing so allow buyers to compare with other assets and bid to buy with confidence."