Balaclava café premises listed with 7% yield potential

The premises of the popular Monk Bodhi Dharma café in Balaclava has been listed for sale with price expectations of $550,000 to $590,000.

Located at the rear of 202 Carlisle Street and adjoining a Safeway supermarket, the 55-square-metre space comes with a secure lease to Monk Bodhi Dharma Café.

The six-year lease with multiple renewal options started on November 1, 2012, with the café paying rent of $39,000 per annum plus GST and outgoings.

The Balaclava café investment offers a significant rental yield possibility ranging from around 6.6% to 7% at current price expectations.

Monk Bodhi Dharma offers a range of vegan and vegetarian foods and is a popular spot for Melburnians, with breakfast and lunch options.

According to estate agent Kenny Oliver from Hocking Stuart, the commercial space has received a considerable amount of interest since being listed for sale.

Oliver, alongside colleague Charles Carty from Hocking Stuart Commercial South Melbourne, is marketing the property for sale, which will be auctioned on December 5 at 3pm.