Mulgrave Investments Sold for $4.35 Million
Tenanted retail investments within the iconic Waverley Park football stadium at Mulgrave in Melbourne’s south-east have been collectively sold by Ray White Commercial Glen Waverley for $4.35 million.
The properties at 6/2, 7/2 and 8/2 Stadium Circuit, Mulgrave, were sold to private investors by Ray White Commercial Glen Waverley’s Ryan Trickey and Ben Ainsworth on behalf of a private owner with yields hovering around 5.0 per cent.
Mr Trickey said the 254 sqm building at 6/2 Stadium Circuit offered investors unique dual leases with a total combined passing rent of $91,716 per annum to a retail super market and Optus.
He said the approximately 127 sqm tenancies at 8/2 Stadium Circuit also offered dual leases with a total combined pasing rent of $61,384 per annum to a hairdressing business and a Telstra shop.
“There is increased pressure for investors in both residential and commercial markets to maximise returns in this increasingly competitive environment. Stakeholders are seeking more creative ways to build better yields,” Mr Trickey said.
“In the case of the Mulgrave properties, we combined long term telecommunication leases to established national tenants in Telstra and Optus to bolster separate retail leases held by individual retail tenants to reduce risk and maximise the offering.
“When presenting these strategic plans to financial lenders there is often better outcomes for the applicants. Ultimately this normally leads to more favourable terms from the lending institution by way of sharper rates or even better terms on the period.
“Collectively Ray White Commercial sold the assets for a combined total of $4,350,000 adding further fuel to the discussion of strata-title retail investments and the depth of that market.”