Written by The Australian Jewish News
Burgess Rawson and Savills are currently marketing several retail investments within the landmark Monash Central Square development at 1866 Princes Highway, Clayton. The subject sites will feature in Burgess Rawson’s first Portfolio Auction of 2016, on Wednesday 24 February at 11am at Crown Casino.
The Autobarn, Petbarn and Fernwood sites (tenancies 1, 2 and 7) are up for grabs, with leases ranging from five to 10 years, and rents from $222,741 to $253,184. The agents expect yields to range either side of 7 per cent net, reflecting a price range of $3.1 to $3.5 million. All of the leases include fixed annual increases of 4 per cent and option periods well into the future. Other tenants in the development, not being offered as yet, include AMF Bowling and Nando’s.
“We expect strong competition for these retailers,” selling agent Raoul Holderhead said. “All the tenants are established and this development was ahead of its time for Clayton, which is now one of the most prime commercial areas in Melbourne. The catchment for the area is enormous and the sizes of the showrooms are ideal for the area, meaning investors can look forward to a long, stable investment that will appreciate with the booming population and influx of younger families and wealth into the City of Monash.”
The development itself features a frontage of more than 200 metres to the Princes Highway with over 60,000 cars passing daily and it boasts in excess of 180 on-title car spaces. The site of the proposed $600 million Nova Centre development is directly opposite, which will feature a Woolworths supermarket, specialty retailers, offices, a 224-room hotel and 660 dwellings.