St Kilda Endota spa premises sells to private investor on 6.6% yield with tax depreciation benefits

High-yielding retail property investments in Melbourne under $1 million offering attractive tax depreciation benefits remain possible.

A private investor has acquired the ground floor health spa premises of the recently completed Luna Apartments developed in St Kilda.

The 150-square-metre Endota Spa premises at 173-177 Barkly Street were acquired for $955,000 in a deal negotiated by Andrew Ryan and Jeremy Gruzewski of Colliers International.

The sale price equates to a yield of 6.6%.

Endota Spa has a seven year lease over the premises, which commenced in October last year with two further options of seven years.

It is one of five retail offerings in the development.

“This property ticked the boxes of, strong tenancy covenant, long term lease with options, inbuilt rental growth and depreciation benefits,” says Ryan.

Endota Spa was founded in 2000 and since expanded nationally with health spas in every state and territory.