Malvern IGA building could sell for more than $4 million at auction
It’s done a roaring trade during the coronavirus pandemic, and now investors can get a piece of the action with a boutique Malvern supermarket building up for sale.
Inner East
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A boutique supermarket building in Melbourne’s inner east is up for grabs and looming as a potential hot buy for investors.
The freehold for Malvern’s IGA supermarket at 1368-1372 Malvern Rd is tipped to attract bids in excess of $4 million at a private auction planned for November 11.
IGA has been based at the building since 2013 and recently signed on as its tenant for another five years.
It also has the option to remain at the building for up to 15 years after 2025 as part of its rental agreement.
Abercromby’s Real Estate Armadale director Tim Derham said the site would generate $156,000 in annual rental income for the owner.
The 400sq m building also boasts a bottleshop and loading dock facilities and is close to apartment blocks and offices.
“If you look at the developments around, there is easy access for a lot of the occupiers of dwellings in the area to cruise in and do their shopping in there,” Mr Derham said.
“I see it as a good long term investment, certainly since the pandemic the supermarkets have done exceptionally well business wise.”
Mr Derham said three local parties had expressed an interest in the building so far.
Meanwhile, freeholds for two plum corner buildings in Chapel St’s are also on the market —
302 Chapel St in Prahran, opposite Coles and near Rebel and JB Hi-Fi, is on the corner of Walker St and is being sold by Ray White Oakleigh.
Agents tip the two-storey building could generate an average $110,000 in rental income for its owners.
A ground floor, 55sq m shop at 457-459 Chapel St South Yarra is also being sold.
Chisholm and Gannon Elwood are taking expressions of interest for the space on the corner of Cliff St, which has a $1m-$1.1m price tag.
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