 Asset Class: | Retail |
 Price: | $ 2353000 |
 Net Yield: | 5.80 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<b>Exceptional Value For Money - 950sqm Corner Lot in Highly-Desirable Development Area With Long-Standing Medical Tenant</b><br><br>This is a unique opportunity to secure a leased investment, comprising two tenants, positioned on a high-exposure corner lot in the sought-after suburb of Como. This freehold asset spans 954sqm of land on a corner in a R50 zoning which allows for a 2-storey multi-unit development. Comprising a total building area of 422sqm, the property was constructed around 2000.<br><br>Anchored by two well-established tenants—a pharmacy and a café—the asset delivers a blended net income of $136,488 per annum plus outgoings and GST, reflecting a net yield of 5.8% after deducting management fees, which is an attractive return for this prime location. <br><br>With its strategic positioning, stable tenancy mix, and strong holding income, this property presents a secure and well-balanced investment opportunity.<br><br><b>What We Like About This Asset</b><br><br>- High exposure corner lot suitable for development<br>- Attractive starting net yield of 5.8% in a sought-after, blue-chip suburb<br>- Re-development potential > zoned R50 (medium to high density)<br>- Next to South Perth Hospital<br>- Commercial residential zoning providing development flexibility<br>- Potential rental upside (approx 20% under-rented based on market evidence)<br>- Pharmacy is long-standing tenant looking to undertake further building upgrades<br>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<b>The Retail Market</b><br><br>The retail market in Como is a diverse mix of essential services, hospitality, and specialty retail businesses. Supermarkets, pharmacies, and medical centers form the backbone of the area’s retail sector, catering to the daily needs of the local community. Hospitality venues, including cafés, restaurants, and takeaway outlets, thrive due to the suburb’s strong residential base and proximity to Curtin University. Additionally, professional services such as banks, real estate agencies, and fitness centers contribute to a well-rounded commercial environment, attracting steady foot traffic from both residents and visitors.<br><br>Development density in Como is a blend of low- to medium-density commercial and residential properties, with increasing urbanization along key corridors like Canning Highway and South Terrace. While traditional standalone retail spaces remain prevalent, recent trends indicate a shift toward mixed-use developments, where ground-floor retail is integrated with residential or office spaces above. This evolving landscape enhances walkability and accessibility, supporting higher tenant demand and long-term investment potential.<br><br><b>Lifestyle & Population</b><br><br>Como is known for its relaxed riverside lifestyle, offering a blend of suburban tranquility and urban convenience. Its proximity to the Swan River, the Perth CBD, and Curtin University makes it a desirable location for families, young professionals, and students. The suburb features leafy streets, well-maintained parks, and a strong café culture, with a mix of independent eateries and national chains catering to locals. Residents enjoy easy access to public transport, major road networks, and nearby shopping precincts, contributing to a high quality of life. <br><br>Over the past few years, Como has experienced steady population growth, driven by increased residential development and demand for housing near Perth’s central business district. The suburb’s evolving property landscape, with a mix of low- and medium-density developments, has supported this growth. Looking ahead, population projections suggest continued expansion as mixed-use developments and higher-density living options become more common, particularly along major roads and transport hubs.<br><br><b>Housing</b><br><br>Como has a thriving property market with strong growth in both houses and units. The median house price is approximately $1.36 million, reflecting a 14.6% annual increase. For units, the median price sits at $680,000, showing an impressive 30% growth over the past year.<br>
Additional Location Information File<ol style="list-style-type:decimal;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Amcal Pharmacy</b></span></p></li></ol><br>Amcal is a leading Australian pharmacy chain that provides a wide range of health and wellness products, prescription medications, and professional pharmacy services. It offers medication management, vaccinations, health checks, and personalized advice from qualified pharmacists. <br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.amcal.com.au/"><u>https://www.amcal.com.au/</u></a><span></span><br><br><b>2. DUX Cafe and Restaurant</b><br>Dux Restaurant is a contemporary dining venue offering a diverse menu focused on fresh, high-quality ingredients. Located in Como, WA, it serves modern Australian cuisine with a selection of seafood, meats, and vegetarian dishes, complemented by an extensive wine list. <br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://duxrestaurant.com.au/"><u>https://duxrestaurant.com.au/</u></a><span></span><br>
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All outgoings are recoverable, except for the management fees.<br><br><b>Statutory Outgoings </b><br><br>Council Rates: $17,045pa<br>Water Rates: $4,751pa<br>Land Tax: $2,900pa<br>Building Insurance: $8,573pa<br><b>Total:</b> $33,269pa<br>
Additional Financial Information FileInitial Term:
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Rental Comparable: 144 Coode Street, Como - 331m2 - $355/m2 (pharmacy) 71 South Terrace, Como - 91m2 - $286/m2 (cafe & restaurant) 457A Canning Highway, Como - 147m2 - $327/m2 (restaurant) 61 Ley Street, Como - 53m2 - $398/m2 (lunch bar) 297 Canning Highway, Como - 169m2 - $414/m2 (cafe & restaurant) T5, 9 Bradshaw Crescent, Manning - 119m2 - $400/m2 (mixed use) 1/3 Barry Marshall Parade, Murdoch - 251m2 - $707/m2 (Pharmacy in Wexford Medical Centre) 6/34-36 Minilya Parkway, Greenfields - 575m2 - $508/m2 (Mandurah Discount Drug Store)
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<b>Purchase Price:</b> $2,353,000* (subject to presenting a formal offer to the owner, but the agent will support that price).<br><br><b>Initial Asking Price:</b> $2.5m - $3m<br><b>Current Base Rent:</b> $143,488pa + Outg + GST (excl mng)<br><b>Less Management</b>: $7,000pa + GST (not recoverable)<br><b>Blended Net Rent</b>: $136,488pa + Outg + GST (incl mng)<br><b>Current Net Yield:</b> 5.8% (incl mng)<br><b>NLA / Land:</b> 422sqm / 954sqm (freehold)<br><b>Any Additional Areas:</b> alfresco area in cafe 50sqm (excluded from NLA)<br><b>Car Bays:</b> 22 bays on site but some are in reciprocal use with the lot next door (this was done as the next door units were repurposed from residential to medical requiring a higher bay ratio).<br><b>Purchase Rate per sqm:</b> $5,576/sqm<br><b>Blended Lease Rate: </b>$340/sqm (excl mng)<br><b>100% Outgoings Recoverable:</b> No, mng fee not recoverable<br><b>Outgoings (per sqm):</b> $33,269pa (excl mng) ($79/sqm)<br><b>Age of Asset: </b>built around 2000<br><b>Are Seller & Tenant Related:</b> Not any more. The seller used to be the operator of the pharmacy but the business sold.<br><b>Re-letting Expectation: </b>Tenanted – expect re-letting time of around 3-6 months in current market. Little data on pharmacies. The cafe is small and would appeal to a larger range of potential tenants.<br><b>Flood Zone:</b> No<br><b>Bushfire Zone:</b> No<br><b>Contamination:</b> No<br><br><b>Asset Composition: </b><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- 954sqm Freehold Corner Lot comprising 2 stratas</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Two tenancies (pharmacy & cafe)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Total of 422sqm of NLA</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Tenancy 1 - Two levels, Ground floor Pharmacy 242sqm and Upper level office and staff amenities + WC 89sqm</span><br> - The tenancy has been fitted out to a good quality as expected from a modern pharmacy with carpeted floors throughout with suspended plaster panel ceilings with feature lighting and cassette and split air conditioning throughout plus large central skylight providing an abundance of natural light to the main retail area.<br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Tenancy 2 - Ground floor Cafe 91sqm + alfresco area 50sqm (not included in NLA)</span><br>- Front cafe area with serving counter and rear fully equipped kitchen area with tiled and vinyl floor coverings to the main café area and has a rear deliver\y access off the rear car parking area.<br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- 11 undercroft car parking bays at the rear accessed from South Street with additional upper deck 12 parking bays accessed from Coode Street via a concrete ramp</span><br>- The upper deck area provides pedestrian access to the adjoining property at 77 South Terrace which also is granted reciprocal vehicle parking rights over area marked “C” as shown on the Strata Plan 39607 attached.<br> - The subject property has similar reciprocal parking rights granted over the common property of 77 South Terrace.<br><br><b>Infrastructure Level:</b> Tier 1<br><br><b>Key Highlights:</b><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Freehold with 954qm of land area comprising 2 stratas</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- South Terrace Frontage of 24.8 m and Coode Street frontage.25.10m (corner lot)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Total of 422sqm of building area</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Built in 2000 > depreciation benefits evident</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Purchase Price $2,353,000 (subject to further negotiations)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Blended net rent $136,488pa + Outg + GST (incl mng)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Net Yield 5.8% (incl mng)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Annual CPI increase</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Market review at option</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Lease expiries Mar-2027 + 3x 5-years (pharmacy); Jun-2026 + 2x 5-years (cafe)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- WALE 1.95 years</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Retail leases, mng fee not recoverable</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Located 11km West of the Perth Airport </span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Located 4km South of the Perth CBD</span><br><br><b>Agent Questions:</b><br><br><b>How long have the tenants been there?</b> The pharmacy has been a pharmacy for decades. The current tenancy as per lease. Café was recently assigned.<br><b>Why is the owner selling?</b> Personal reasons, elderly.<br><b>Are any tenants related to the owner in any way?</b> Not to my knowledge. The seller used to operate the pharmacy.<br><b>Do you foresee issues with any of the tenants paying full rent?</b> I could ask property management for an arrears report.<br><b>Are management costs recoverable under outgoings for both leases?</b> No - retail leases.<br><b>Does the property need any maintenance work (anything that will arise from the B&P inspection)?</b> I don’t know.
