Investor buys Melbourne's Ormond retail at 3.1% yield

A securely let retail property within the Ormond Village shopping strip in Melbourne has been snapped up by a private investor at a yield of 3.1% at auction.

Located at 750 North Road, the property comprises a single level, 180 square metre building on a 220 square metre site with parking at the rear and frontage to North Road.

The property was sold subject to a five-year lease with a further five-year option to Coffee Tribe at a rental of $22,000 per annum net.

The winning bid was for $690,000, more than $90,000 above the vendor’s reserve, said selling agent George Takis of Teska Carson.

"This was a property which drew very good enquiry due to the very affordable price range, the fact that it offered the security of a virtually new five-year lease, and the general market factors such as low interest rates, share market volatility and the recent increase in non-residential investment," said Takis.

"Investment properties in the circa $1 million and under price range have and will continue to entice strong enquiry especially while interest rates remain so low.’’