4 of the 5 Merchant Quarter retail units auctioned at Colliers yesterday were sold under the hammer, 2 of them at sub-5% yields.
They’re among 12 retail, food & health sector units on the ground floor of the expanded building, which has new & established apartments at the top, and parking in the middle. 2 of the ground-floor units are vacant.
Agents on all 5 units were Tony Allsop, Josh Coburn & Cheryl Higginson.
28-42 Totara Avenue:
Rent: $42,301.44/year net passing income, 10-year initial term, 2 5-year rights of renewal
Outcome: sold for $900,000 at a 4.7% yield
Rent: $52,000/year net passing income, 10-year initial term, 2 4-year rights of renewal
Outcome: sold for $1.175 million at a 4.42% yield
Spicy Hot Pot:
Rent: $33,060/year net passing income, 8-year initial term, 2 6-year rights of renewal
Outcome: sold for $618,000 at a 5.34% yield
Rent: $34,333/year net passing income, 6-year initial term, 2 3-year rights of renewal
Outcome: sold for $500,000 at a 6.87% yield
Outgoings: body corporate costs $6045/year – about $55/m²/year + gst
Outcome: passed in
Attribution: Agency release.