Springvale retail asset sells at auction for $1.44 million — $90,000 above reserve

A standalone shop in the Melbourne suburb of Springvale has sold under the hammer for $1.44 million after a busy auction campaign through Ray White Commercial Oakleigh.

Agent Paul Rizzo says the sale price for 244 Springvale Road was $90,000 above reserve and realised a yield of 3 per cent.

As well as having high exposure to a main road, the 85sqm building on 157sqm of land backs on to the Springvale shopping centre, is a short walk from the Springvale train station and is serviced by plenty of buses.

“The Commercial 1 zoning allows for potential for future development [subject to council approval],” says Mr Rizzo, who marketed the property with Theo Karkanis.

“The tenant is on a three-year lease [November 2016] with two further three-year options.

“The versatility of the property attracted more than 50 direct inquiries and there were four bidders on auction day among the 25 attendees.”

Mr Karkanis says six inspections were carried out, as well as two second inspections.

“We recorded more than 1700 views of the listing,” he says. “Information memorandums were sent to 26 parties and contracts sent to 18.”

The shop trades as a daigou — a retail store that sends goods to China — and the signage reads “Gifts and International Express”. The current rental return is $44,290, plus GST and outgoings.

Springvale is located 23km south-east of the Melbourne CBD.

• Search more properties for sale through Ray White Commercial Oakleigh
• Follow Ray White Commercial on Twitter and LinkedIn