A major large format retail asset in Hawthorn has sold to a Chinese investor for $25 million, representing a sharp 3.14 percent yield and a new record price for the leafy Melbourne east suburb.

The 2,593sq m property at 283-285 Burwood Road is tenanted by furniture retail brands Snooze and Sofas Direct and self-storage provider National Storage, generating approximately $786,344 net per annum (plus GST and outgoings).

Savills Australia’s Benson Zhou, Clinton Baxter, Julian Heatherich and Dorothy He brokered the deal for the high-profile asset, saying they received 192 enquiries from a wide range of buyers.

“Income-producing assets are extremely popular this year, due to the tightening of lending policies following the Royal Commission,” Mr Zhou said.

“Residential developers are seeing these challenges but overall, they’re optimistic towards the future of real estate in Australia.”

Mr Zhou went on to say the future development potential of the Commercial 1 zoning under the City of Boroondara Planning Scheme had appealed to the buyer.

“The property sits within the 2010 Glenferrie Structure Plan, which seeks to enhance and the existing distribution of land uses along Burwood Road,” he said.

“The buyer recognised the upside presented here and plans to land-bank in the short term.”

Mr Baxter said the location, in the heart of the popular Burwood Road retail precinct and opposite national retailer, Bunnings Warehouse, was another key selling point.

“The property is also just 250 metres from Glenferrie Road, which is arguably Melbourne’s most renowned suburban shopping strip,” he said.

“Hawthorn and Glenferrie train stations are within walking distance, the Monash Freeway provides easy vehicle access, and colleges, parks and recreation facilities abound in the area.”

Learn more about Savills Retail Investments.