Doncaster retail sells at $860,000

Doncaster retail sells at $860,000
Andrea DixonSeptember 30, 2014

A retail unit in Doncaster East has sold for $860,000, reflecting an increase in value of more than 100% in four years.

Shop 10 in the Devon Plaza strip shops at 958 Doncaster Road last traded four years ago for $400,000, according to RP Data.

The sale, which was conducted by Chris Alcock of Gorman Kelly, was also 31% more than it was expected to achieve at auction.

The single storey 49.5 square metre retail freehold is zoned Commercial 1 and currently leased to Canine Elegance.

The tenant has a new three-year lease with a three-year option that began in August this year for a yearly rent of $31,200, plus GST and outgoings.

The lease includes 5% annual rent increases with a market review if the option is exercised. The lease agreement reflects a yield of 3.6% for the new owners, while the previous landlord was banking 7.8%.

Agent Chris Alcock says the sale reflects how hotly contended affordable commercial investments area among small investors and self managed super funds.

 

Editor's Picks

Hamton launches sales at Scotch Hill Gardens, Hawthorn
RBA cut interest rates amid inflation decline
Reddam House North Shore opening to lure families to North Sydney
Woolworths to sell another prime Brisbane development site with apartment approval
TOGA's vision for building vibrant new community precincts across Sydney