7-Eleven in Melbourne's Heathmont goes to auction

A 7-Eleven in Melbourne’s Heathmont is up for grabs at auction on May 18 through Colliers with expectations of more than $2.5million.

The convenience store on the corner of Canterbury Road and Campbell Street is fully leased to the 7-Eleven franchise on a 10-year term until July 2021, with one five-year option to renew.

The 1,091 sqm property makes a rental income of about $115,755.30 per annum, with an annual increase of three per cent.

He said she had already received strong interest from Melbourne-based investors wanting to shift their focus to commercial assets.

The listing agents are Colliers International’s Jeremy Gruzewski, Dorothy He and Ben Baines. 

“The retail property market in Melbourne’s outer-eastern suburbs has traditionally been viewed as a natural fit for many local investors, who look for secure and consistent investment returns,” said Dorothy He.

“With historically low interest rates and a lack of attractive alternate options, yield-chasers are still looking favourably into commercial properties that deliver stable income streams.”

Developers had also expressed interest in the property, with the initial intention to landbank and the long-term view to redevelop.

“Its general residential zoning is being proposed for change into mixed-use zoning under the Heathmont Neighbourhood Activity Centre Structure Plan, which is expected to open up wider possibilities,” she said.