Mt Waverley retail property sells above reserve at 2 percent yield

A standalone retail investment with redevelopment potential in Melbourne’s affluent south-east suburb of Mount Waverley has sold at auction for a yield of 2 percent yield.

The property at 6 Andrew Street fetched $616,000 at the on-site auction — well above the reserve price — and was snapped up by a local investor.

The selling agent was Paul Rizzo of Ray White Commercial Oakleigh.

Rizzo said the sale price was more than $160,000 above the vendor’s reserve.

“Boasting an exceptional tenant, this secure investment property trading as a laundromat is currently returning rent of $12,622 per annum on a long-term lease,” he said.

The building is on a land area of 188 sqm with potential for further development subject to council approval.

“Mount Waverley’s rising status as one of Melbourne’s fastest growing and prestigious south-eastern suburbs ensured this property appealed to a range of buyers.”

The five-year leased commenced in 2014 with two further five-year terms. The property was on the market for 39 days, RP Data showed.