A major retail asset in east Melbourne has sold to a Chinese investor for $25 million, a record price for the suburb of Hawthorne.
The transaction, brokered by Savills Australia’s Benson Zhou, Clinton Baxter, Julian Heatherich and Dorothy He, represents a sharp 3.14 per cent yield.
The 2,593sq m property at 283-285 Burwood Road is located just 250 metres from Glenferrie Road, one of Melbourne’s most renowned suburban shopping strips.
The site also benefits from easy access to Hawthorn and Glenferrie train stations, which are within walking distance and the Monash Freeway for easy vehicle access.
The retail hub is tenanted by furniture brands Snooze and Sofas Direct and storage provider National Storage.
The new owners can expect approximately $786,344 net per annum.
“Income-producing assets are extremely popular this year, due to the tightening of lending policies following the Royal Commission,” Savills Australia’s Benson Zhou said.
“Residential developers are seeing these challenges but overall, they’re optimistic towards the future of real estate in Australia.”
The property includes Commercial 1 zoning under the City of Boroondara Planning Scheme.
“The property sits within the 2010 Glenferrie Structure Plan, which seeks to enhance and the existing distribution of land uses along Burwood Road,” Zhou said.
Diversified property trust GPT recently listed its Highpoint Homemaker Centre in Melbourne’s inner north west suburb of Maribyrnong with price expectations of $80 million.
Superannuation fund ISPT has also listed a mall in Melbourne’s northern suburbs with similar price expectations sitting around $80 million.
