High hopes as 13 shops sold
PRIVATE investment firm and Melbourne-based developer, GLG, has swooped on 13 adjoining shops on High St, Armadale, paying about $25 million in an off-market transaction facilitated by Allard Shelton directors, James Gregson and Michael Ryan.
The sale is the largest transaction of consecutive, adjacent shops for High St, Armadale.
“In the short to medium term, the 13 Armadale shops, which collectively sold on a 2.7% yield, could, based on comparable rents in the strip, confidently realise a rental uplift,” Mr Ryan said.
“In the long term, there is also huge potential to capitalise on the buildings themselves and their prime location.”
The landholding is strata-titled into 13 units spanning a land area of 2415sq m and a frontage of 80 metres, with 2700sq m of lettable area.
There are 63 rooftop parking spaces, 43 of which are allocated to tenants.
The strip is tenanted by long-term tenants such as Sofas Direct, Aya Teppanyaki, Steinway Piano Gallery and High Dental.
According to the ABS, the overall Australian retail turnover rose 2.8% in August 2017 compared to 2016.
Mr Ryan said this illustrated that retail and hospitality spaces were still a prominent avenue through which consumers buy, giving investors even more confidence about investing in this sector.
“Roughly $25 million of retail assets has been transacted in this deal alone and it has been a win-win for everyone – the vendors have achieved the best price in the market from their investments and GLG have acquired a premium-grade landholding,” Mr Gregson said.
“Despite the perceived uncertainty for the traditional retail landscape, there is clearly still an unprecedented demand and funds available for well-located retail investments.”