The property located at 1000 Nepean Highway is leased to Freedom & Barbeques Galore on new 10 & 5 year terms, and delivers the purchaser a net income stream of $1,153,438 per annum.

Located adjacent to the Moorabbin Homemaker Centre, 1000 Nepean Highway occupies a major corner landholding with over 96 metres of street frontage to Nepean Highway, which is estimated to have approximately 22 million vehicle pass by each year.

The two storey building which recently underwent a refurbishment offers 4,376sq m of lettable area and 65 basement carparks. The transaction reflects a building rate of almost $5,000/sq m.

The property was marketed by Savills Melbourne agents Nick Peden, Jesse Radisich & Benson Zhou through a hotly contested expression of interest campaign leaving a catalogue of local and offshore underbidders awaiting another major retail opportunity.

Mr Peden said that high quality investment stock is of key focus throughout the market due mainly to the low interest rate environment and comparatively poor returns from the equities market.

“Demand for prime assets throughout Melbourne is as strong as it ever has been, and the sale result of this trophy retail investment attests to that.”

Mr Peden went on say the sale was a textbook example of how exposure to vast global networks and the ability to unlock offshore captial, can directly correlate to achieving a premium result.”

“Particuarly with larger scale assets, we are continuing to see offshore investors reign supreme over local counterparts.”

“In this instance the buyer was sourced directly from the Savills Macau office.”

“Despite a range of negetive commentary regarding the retail sector, properties in proven locations with secure lease covenants are transacting quickly and at strong prices,” Mr Radisich added.

“Throughout the last quarter of 2019, retail sales accounted for 50% of the Savills Melbourne transactions, signaling the direct influence the low interest rate climate is having on the retail market.”

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