Hawthorn Retail Investment | $1.13M | Net Yield: 5.91% | Established Hospitality Tenant

Positioned within one of Melbourne’s tightly held inner-city markets, this retail investment combines a high-exposure position, established hospitality tenant and secure long-term income profile.

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The property benefits from consistent pedestrian activity generated by local residents, professionals, students and visitors, supported by a strong mix of surrounding retail, hospitality and commercial amenity.

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Comprising approximately 100 sqm of internal floor area together with exclusive use of an additional 80 sqm courtyard, the property provides a versatile indoor-outdoor hospitality offering. Its distinctive period façade creates strong street presence, while the extensively upgraded interior incorporates a commercial kitchen, polished concrete flooring and dedicated courtyard dining.

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The asset is fully leased to an established hospitality operator with a proven trading history. The tenant has invested significantly in the premises and operates across café, lunch, dinner and evening trade, demonstrating a strong commitment to the property.

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The current lease generates gross annual income of $73,548 plus GST, with the tenant responsible for recoverable outgoings under a net lease structure. After non-recoverable management fees and land tax, the property generates approximately $67,828 in net annual income, representing a net yield of approximately 6.00% on the $1.13 million acquisition price.

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The lease commenced in September 2023 and provides an initial five-year term together with a further five-year option. Annual rental growth of 4% provides a structured mechanism for increasing income throughout the investment period.

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The tenant is further supported by an established customer base and demonstrated trading history, strengthening the underlying income profile of the asset.

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Beyond the existing tenancy, the property’s commercial zoning provides flexibility for a range of potential future uses, including retail, hospitality and selected commercial or medical applications, subject to the relevant approvals.

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The surrounding market is supported by established demographics, education infrastructure, extensive public transport and an active retail and hospitality economy, contributing to consistent activity throughout the broader precinct.

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With secure income, fixed annual rental growth, an established tenant and a tightly held inner-Melbourne position, this acquisition provides exposure to a high-quality retail asset with both immediate income and longer-term underlying property fundamentals.