Caydon sells Moonee Ponds retail investment
Two retail investments sold for low yields this week.
In Altona North, a fast food restaurant held for 32 years has collected $6.2 million.
The Hungry Jack’s outlet at 155-159 Millers Road traded to a Sydneysider for at a 3.8 per cent yield, believed to be a record low for a Victorian property of this type.
Spreading 1780 square metres at the south east corner of Blackshaws Rd, the property was offered with a lease expiring in 2028.
With options, the tenant, controlled by Jack Cowin’s Competitive Foods, can stay 40 years after that.
CBRE’s David Minty, Nathan Mufale, Scott Hawthorne and Jing Jun (JJ) Heng were the agents.
Their deal comes 15 months since a KFC-backed property in Sydney’s Dulwich Hill traded for $4.26m – reflecting a 3.17pc return – believed to be the country’s lowest for an investment of this type.
Last December, another Sydney property, at Dee Why, with two fast food outlets, sold for $13.02m – or a 3.43pc yield (story continues below).
Caydon sells another Moonee Ponds shop
Meanwhile in Moonee Ponds, Caydon Property has offloaded another small retail investment on the ground floor of a new apartment building.
Shop 4, 40 Hall St, leased to tattoo eradicator Remover, sold to a local investor for $1.11m – a 4.57pc net yield.
It is the third shop Caydon has recently sold in the complex – coming two months since a 172 sqm space rented to café, Mr Majestic, traded for a 4.33pc return. Last June a 145 sqm tenancy occupied by Bottlemart exchanged for $1.025m.
“There is certainly greater scrutiny placed on retail investments in the post-COVID-19 market, however, there still remains a shortage of well-located properties on the market as investors’ hunt for yield continues,” Mr Hawthorne said.
Of the Altona North deal, Mr Heng added “to receive a total of eight offers…highlights the current depth in the market from this buyer profile at present”.
