Toorak Baker's Delight investment fetches $4.25 million

A Melbourne based investor has paid more than $4.25 million for a Toorak retail investment.

It is leased to the Toorak Newsagency and Bakers Delight on a sub 4% yield.  

Teska Carson’s Fergus Evans and Michael Ludski, who brokered the deal, said the result reflected the continuing strength of the retail strip market. 

“The retail strip market has traditionally been very popular amongst small investors and this sale underscores the ongoing strength of that market,’’ Evans said.  

“It’s also indicative of an increase in demand for this type of property as investors drift away from a somewhat troubled residential sector.’’

Located at 479 & 479A Toorak Road, the property comprises a double fronted, two-level, 257 square metre building, which is divided into two tenancies (479 and 479A), on a 207 square metre site with frontage of nearly six metres to Toorak Road and Jackson Street carpark. 

The property was sold subject to leases to Bakers Delight and NewsXpress returning a total net income of $167,116 per annum. 

Ludski said the property presented an outstanding retail investment opportunity in one of Melbourne’s most coveted retail shopping strips.

The sale follows that of a similar strip property, also transacted by Teska Carson, at 481 Toorak Road, Toorak, in April which was purchased by a local investor with the final bid over a Hong Kong investor who had flown in just for the auction.

The buyer paid $8.7 million on a 4.1% yield.

Both of these sales were overshadowed by the sale of Village Walk, a double-storey mall at 485-505 Toorak Rd, which fetched a reported $80 million in an off-market sale to developer Bill McNee of Vicland Property Group.