Popular East Melbourne café sells on thin yield

A popular café in EAST MELBOURNE has been purchased by a private investor on a paper-thin yield of about 5.3%. 

The strata titled property, home to French-inspired bakery Laurent Patisserie, is located on the ground floor at 1 Powlett Street and sold for $1.53 million.  

Tenant Laurent Patisserie started its five year lease last year, at a current net rental of $81,752.

 It is subject to annual increments fixed at the CPI. There is one further five year option to renew with a rental review to market on exercise.

Gray Johnson director Matt Hoath negotiated the private sale.

The strata property on the ground floor of a high quality apartment building, said Mr Hoath, was fitted out as an exclusive cafe and patisserie and benefits from its premium position immediately opposite the MCG, Jolimont railway station and in close proximity to Melbourne’s most revered city edge parklands.

The sale price represented a site value in excess of $12,000 per square metre, he added.