NAB Thomastown premises sells under $2 million

A National Australia Bank-anchored commercial property in Melbourne's Thomastown has fetched $1,935,000 at auction.

The 266-268 Settlement Road property was snapped up by a private investor at an indicative return of a little more than 7% on a fully let basis.

The deal was brokered through Gray Johnson and Burgess Rawson agents. 

NAB has had its office here since 1990 and currently holds a four-year lease with three further four-year options.

The current rental income from the NAB lease is $108,000 net with annual increases set at the CPI.

In addition, there is a vacant space of 204 square metre at the building's rear providing a fully partitioned and self-contained office space, which may  

Gray Johnson's Matt Hoath said this space would likely attract a commercial occupier or there is a $30,000 annual rental guarantee provided by the vendor so the current combined forecast annual rental from the property is $138,000.

The building area comprises 528 square metre with parking for 20 vehicles.