 Asset Class: | Retail |
 Price: | $ 4650000 |
 Net Yield: | 6.46 % |
Net Yield - including solar strategy: | % |
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A strategically positioned investment, at the base of a high-end residential development, by one of Melbourne’s more experienced and award-winning developers. The asset provides a secure investment, via exposure to a high-end supermarket (operator with 30 years’ plus experience), in one of Melbourne’s affluent suburbs. The lease comes with an <b>impressive initial lease term of 15 years</b>, backed by security equivalent to 6 months’ rent (plus outgoings), double the estimated timeframe to find a new tenant in this location. <br><br>The 1009m2 asset is positioned with exposure to Railway Road. The premises has recently undergone a <b>significant and high quality fit out worth over $1 million</b>, which provides a high level of confidence and security in the asset for investors. The premises benefits from supermarket, bottleshop, cool room, freezer, café and deli. The asset has an ideal layout, with rear loading bay and storage area. The lift is available to the upper plaza, immediately outside the entry/exit, providing convenience for visitors. The tenancy is complimented by an impressive and tailored commercial precinct which will benefit significant from the apartments above which are majority/all sold. <br><br>The property delivers a net annual return of $299,041, with a net yield of 6.43% (including non-recoverable management fees of 3%, and land tax of $2,144). <b>Depreciation on this brand-new asset is expected to be excellent</b>, healthily increasing after-tax returns. The engagement of a quantity surveyor is highly recommended. <br><br>Jefferies Provedore is a <b>family-owned and operated business that has been serving the Melbourne community for over 30 years. </b>Since its modest beginnings, Jefferies has maintained a love affair with quality local food and wine. The operator’s extensive experience reflects their deep understanding of the local market and a long-standing commitment to quality and community engagement. The tenant has signed up on a brand new 15-year lease, with 3 x 5 year options. Annual increases are locked in at a healthy 3.5%, with <b>security equivalent to 6 months’ rent (plus outgoings) providing excellent security to the landlord. </b><br><br>Long-established as one of Melbourne’s premiere suburbs, Blackburn offers excellent schools and a wide range of sporting clubs and facilities nestled into leafy surrounds. With the commercial precinct surrounded by 289 apartments (which are all sold), the tenants will be supported by a steady stream of foot traffic and activity. <br>
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Blackburn is a well-established suburb in Melbourne’s eastern corridor, approximately 17 km from the CBD. It is known for its strong residential appeal, commercial activity, and proximity to key transport links. The area benefits from steady population growth, well-regarded schools, and a mix of older and modern developments, making it a desirable location for both residential and commercial investment.<br><br><b>Commercial & Retail Investment</b><br><br>• Retail & Office Demand: The Blackburn commercial precinct, particularly along Whitehorse Road, attracts a mix of local businesses, medical tenants, and professional services. The area benefits from strong foot traffic and local amenity.<br><br>• Industrial Market: Light industrial and logistics assets near Blackburn’s eastern boundary remain in demand due to proximity to major arterials, including the Eastern Freeway and EastLink.<br><br>• Development Potential: Rezoning in parts of Blackburn has allowed for higher-density mixed-use developments, presenting opportunities for investors interested in residential or commercial expansion.<br><br>Transport & Connectivity<br><br>• Train & Road Links: Blackburn Railway Station is a key hub on the Belgrave/Lilydale line, providing a direct link to the Melbourne CBD. The suburb is also serviced by major arterial roads, including Whitehorse <br>Road and nearby freeway access.<br><br>• Public Transport & Accessibility: Well-connected bus networks and pedestrian-friendly infrastructure support local business activity and residential demand.<br><br><b>Residential Market & Rental Demand</b><br><br>• Strong Owner-Occupier Base: The suburb maintains a high level of owner-occupier interest, particularly from families attracted to local amenities and schools.<br><br>• Rental Demand: Investors benefit from stable rental yields due to ongoing demand for housing, particularly from professionals and families seeking proximity to Melbourne’s east and CBD.<br><br>• Gentrification & Development: A wave of modern townhouses and apartment developments has increased housing supply, attracting a mix of tenants and buyers.<br><br><b>Investment Considerations</b><br><br>• Capital Growth Potential: Blackburn has demonstrated steady long-term capital appreciation, particularly in well-located residential and commercial assets.<br><br>• Low Vacancy Rates: Retail and residential properties in prime locations benefit from low vacancy rates, ensuring consistent rental income.<br><br>• Zoning & Future Growth: Investors should monitor zoning changes and development activity, as continued growth in Melbourne’s east supports future demand.<br><br><b>Key Investment Highlights</b><br><br>• Strategic location – Positioned 17 km from Melbourne CBD with excellent transport links.<br><br>• Strong tenant demand – Stable leasing environment across residential, retail, and commercial sectors.<br><br>• Development opportunities – Mixed-use and medium-density developments increasing in key precincts.<br><br>• Capital growth potential – Long-term appreciation driven by location and infrastructure investment.<br><br>• Low vacancy rates – Consistent demand for both commercial and residential properties.<br><br>
Additional Location Information FileJefferies Provedore is a family-owned and operated business that has been serving the Melbourne community for over 30 years. Since its modest beginnings, Jefferies has maintained a love affair with quality local food and wine. The operator’s extensive experience reflects their deep understanding of the local market and a long-standing commitment to quality and community engagement. <br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.jefferies.com.au/"><u>https://www.jefferies.com.au/</u></a>
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166 Whitehorse Road, Blackburn – 1009m2 - $308/m2 166 Whitehorse Road, Blackburn – 315m2 - $397/m2 Shop 13, 166 Whitehorse Road, Blackburn – 88m2 - $600/m2 Shop 9, 166 Whitehorse Road, Blackburn – 319m2 - $400/m2 Shop 5, 166 Whitehorse Road, Blackburn – 175m2 – 375/m2
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● High profile development, by the highly experienced and reputable Pace Development team. <br>● Returning approximately $299,041 per annum plus outgoings and GST (after assumed property management fees of 3%, and land tax which is also non-recoverable).<br>● 6.43% net yield, complimented by expected strong depreciation benefits<br>● Impressive 15-year lease with an additional 3 x 5 year options<br>● Security equivalent to 6 months’ rent (plus outgoings) providing excellent security to the landlord<br>● Healthy 3.5% annual increases<br>● Building area of 1009m2, with an impressive forty five (45) basement car parks<br>● Modern and extensive quality fit out worth over $1 million, providing confidence to the investor <br>● Strong location with good street frontage, which will have strong appeal when attracting new tenants<br>● Easy access to public transport with bus routes 271 and 279 on your doorstep, and a 10 minute walk to Blackburn Train Station<br>● Located only 7km from Deakin University<br>● Close to Blackburn Medical Clinic and Box Hill Hospital<br>● 5 minute drive to Box Hill Central Shopping Centre<br>● Ideal set and forget secure investment opportunity.<br>
