Fierce bidding for Carnegie Vietnamese restaurant

A retail property in Carnegie, Melbourne, has sold for $3.35 million.

The 66 Koornang Road property comprises a land area of 212 square metres and a building area of 150 square metres is leased to a Vietnamese restaurant trading as Pho 66.

The lease returns $84,872 per annum plus outgoings and GST and the sale reflected a yield of 2.53 percent.

Fitzroys agents Chris Kombi and Chris James said the sale reflected a land rate of $15,800 per square metre.

Kombi said the property attracted more than 150 buyer enquiries and had seven bidders at auction.

"The property is located just metres from the new Carnegie Railway Station currently under construction, which is part of the state government's $5 billion level crossing removal initiative and due for completion in 2017,” Kombi said.

"The property’s future value is underpinned by a rapidly growing residential catchment with a major transformation currently underway within the Koornang Road Activity Centre with a number of high rise residential developments completed nearby and approximately 15 others in various stages of planning and development."