WA investor catches Subway in Melbourne after late landing

An interstate investor who jetted in too late to bid at auction has still managed to secure the North Melbourne retail strata asset he wanted.

Ray White Commercial Nunawading director Brett Diston sold the property at 1/528 Victoria Street to the Perth-based buyer for $900,000 immediately after the auction.

“They were flying in to buy at auction but luckily for them we had passed the property in,” Mr Diston says. “So we negotiated as soon as they arrived.”

The 80sqm property fronting Victoria Street, about 2km from the Melbourne CBD, was sold on a 4.4 per cent yield.

The sale price reflects a building rate of $11,250 per square metre.

“The long-term tenant has been established at the site since 2011 and is on a secure five-year lease until 2021, with a five-year option,” Mr Diston says.

“Subway pays a net rent of $40,000 per annum, plus all usual outgoings as per the lease, along with 4 per cent increases per annum.”

Mr Diston says the buyer had first seen the property on a Ray White Commercial Nunawading newsletter.

The vendor is a local investor. The property is zoned mixed use.