Investor snaps up Rogues Jeanery shop premises on St Kilda's Acland Street on 5% yield

The premises of Rogues Jeanery on the trendy Acland Street shopping strip in St Kilda has sold at auction for $3.14 million.

The sale price reflects a yield of around 5% with current tenant is Rogues Jeanery Pty Ltd, returning $158,371 per annum plus GST.

The result reflected a land sales rate of $36,000 per square metre.

Rogues Jeanery (pictured below) has occupied the building since the mid-1980s and its current lease expires in February 2018.

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The 110 square metre shop comprises two interconnected shops on two separate titles and has frontage onto Acland Street of 8.5 metres.

The auction campaign was handled by Mark Talbot and Geoff Emmett of Fitzroys. The annual rent review is given as 6%.

Talbot says the purchaser was attracted to the maximum future flexibility of the adjoining shops on two titles, as well as the solid income stream with annual rent review increases, and the location in one of Melbourne’s most sought after retail shopping strips.

Acland retail property is a tightly held asset with no shops currently listed for sale and just two shops available for lease in a new development on the corner of Acland Street and Carlisle Street.

According to research by Beller Commercial, Acland Street has the highest rents among Melbourne retail strips and also the lowest vacancy, at just 2.5% with just two stores out of 80 vacant.

Acland Street has previously reported a zero per cent vacancy rate in similar surveys published over the years.

Averaging asking rents on Acland Street are around $1,000 per square metre, per annum.