Commercial property valuation functionality
Syndicator MCS Property has made two further retail acquisitions, buying Gateway Shopping Village, Langwarrin for $21.4 million and Meadow Heights Shopping Centre in Coolaroo for $6 million. Gateway Shopping Centre is a 9,280m 2 enclosed neighbourhood centre on the Mornington Peninsula anchored by a Coles supermarket and comprises 37 specialty tenants and 491 on-site car spaces. The purchase price reflected an analysed yield of 8.75%. Meadow Heights is a convenience based neighbourhood centre in Melbourne ’ s outer north, anchored by an IGA Supermarket and comprising 26 specialty shops and on-site parking for 262 cars.

Gandel Retail Trust has purchased Safeway Rosebud on the Mornington Peninsula for $6.16 million reflecting an initial yield of 7.5%. Prime supermarket yields have firmed markedly over the last 10 years, falling from a high of 10.75% in 1992 to below 8% since 1999. property valuationSupermarkets leased to Coles or Safeway generally sell on yields between 0.5% and 0.75% firmer than comparable premises leased to other chains.

The period witnessed two major industrial investments with a combined value of $29.6 million. AMP Industrial Trust paid $20.3 million for a 33,668m2 distribution centre on South Gippsland Highway, Hampton Park. The sale price reflects an analysed yield of 9.9%. Completed in 1989, the building enjoys excellent exposure and easy access to the Monash Freeway and has seven and a half years to run on a 20 year lease to Cole’s supermarkets.

A private investor paid $9.3 million to acquire a modern high clearance office/warehouse at 1257 Ferntree Gully Road, Scoresby from Commonwealth Custodial Services Ltd, reflecting an analysed market yield of 8.97%. With a site coverage of 46%, the property has ample room for expansion.