 Asset Class: | Retail |
 Price: | $ 1720000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<p class="mb-4">2/358 Canterbury Road, Surrey Hills, a premier retail investment opportunity in one of Melbourne's most prestigious suburbs. This exceptional property comes with a secure 5-year lease to Feel Good Pilates, generating a robust rental income of $110,016 per annum* with attractive fixed annual increases.</p><p class="mb-4">Constructed by renowned developer Prime Edition and designed by award-winning architects Elenberg Fraser, this investment offers prime street exposure within the prestigious Arbour Park development. The 216m² space features modern design elements and is strategically positioned with excellent visibility along Canterbury Road.</p><p class="mb-4">The property boasts convenient basement parking with eight designated spaces, enhancing its appeal to both tenants and clients. Located at the intersection of Canterbury Road and Union Road, with the newly refurbished Union Station nearby, this investment benefits from exceptional connectivity and exposure in one of Melbourne's most established and affluent suburbs.</p><p class="mb-4">With a lease commencement date of 22 June 2024 and solid lease fundamentals including a three-month security deposit and 100% of outgoings (except land tax) covered by the tenant, this property represents a hassle-free investment opportunity with significant depreciation benefits and multiple extension options beyond 2029.</p>
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<p class="mb-4">Surrey Hills is a leafy, established suburb located approximately 11 kilometres east of Melbourne’s Central Business District (CBD). Known for its peaceful atmosphere, charming streetscapes, and strong community spirit, Surrey Hills is highly attractive to families, professionals, and retirees alike. The suburb has a population of around 13,600 residents, with a median age of 40, reflecting its popularity among mature families and professionals.</p><p class="mb-4"></p><p class="mb-4">One of the suburb’s key highlights is its excellent connectivity. Surrey Hills is serviced by Surrey Hills Railway Station and the nearby Chatham Railway Station, both providing regular, direct services to Melbourne’s CBD in under 25 minutes. Additionally, the suburb has convenient access to major arterial roads such as Canterbury Road, Riversdale Road, and the nearby Eastern Freeway, ensuring easy commuting options.</p><p class="mb-4"></p><p class="mb-4">The local demographic comprises predominantly affluent families and professionals, drawn by the area’s quality schools, green spaces, and village-like shopping precincts. Median house prices in Surrey Hills currently sit at around $2.3 million, indicating its desirability and strong investment potential. The suburb consistently experiences steady property appreciation, driven by high demand, limited land availability, and ongoing gentrification.</p><p class="mb-4"></p><p class="mb-4">Surrey Hills boasts a charming shopping village centered around Union Road, offering an array of boutique cafés, specialty stores, bakeries, and restaurants, fostering a strong sense of community. The area is also situated near larger retail precincts such as Box Hill Central, Westfield Doncaster, and Camberwell Junction, providing ample shopping, dining, and entertainment options.</p><p class="mb-4"></p><p class="mb-4">The suburb is highly regarded for its educational institutions, including Surrey Hills Primary School, Chatham Primary School, and proximity to elite private schools in neighbouring suburbs, such as Camberwell Grammar, Strathcona Girls Grammar, and Presbyterian Ladies’ College (PLC).</p><p class="mb-4"></p><p class="mb-4">Green open spaces and recreational facilities significantly enhance Surrey Hills’ appeal. Popular parks like Surrey Gardens, Wattle Park, and South Surrey Park offer residents ample opportunities for outdoor activities, sports, and community events.</p><p class="mb-4"></p><p class="mb-4">Overall, Surrey Hills offers a unique blend of suburban tranquillity, excellent connectivity, premium amenities, and strong community values, making it one of Melbourne’s most sought-after eastern suburbs for both residents and investors.</p>
Additional Location Information File<p class="mb-4">The property is leased to Feel Good Pilates, a boutique reformer Pilates studio brand based in Melbourne, offering a welcoming and inclusive environment for individuals at all fitness levels. With studios located in Carnegie, Hawthorn, Surrey Hills, and Ashburton, Feel Good Pilates emphasises functional movement to build both physical strength and mental well-being.</p><p class="mb-4">The studio provides a variety of class styles, a health and wellness business that aligns perfectly with the affluent demographic of Surrey Hills. The tenant has committed to a secure 5-year lease term with lease commencement dated 22 June 2024.</p><p class="mb-4">The pilates studio benefits from the property's modern design and premium fit-out, making it an attractive destination for health-conscious clients in the eastern suburbs. The eight basement car parks provide valuable convenience for both staff and clients.</p><p class="mb-4">https://www.feelgoodpilates.com.au</p>
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<p class="mb-4">This investment presents compelling financial fundamentals with a <strong>secure annual rental income of $110,016 + GST + Outgoings (01/06)</strong>. The lease structure includes <strong>fixed annual increases of 2.00%</strong>, providing investors with predictable income growth.</p><p class="mb-4">The tenant has provided a <strong>security deposit equivalent to 3 months' rent + GST</strong>, minimising risk exposure. The lease arrangement requires the tenant to pay <strong>100% of outgoings (except land tax)</strong>, creating a favorable net income position for investors.</p><p class="mb-4">The property offers <strong>significant depreciation benefits</strong> that enhance after-tax returns, making it particularly attractive from a tax-efficiency perspective. With the <strong>five-year lease term and extension options beyond 2029</strong>, this investment provides both immediate security and long-term growth potential.</p>
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<p class="mb-4">929 Riversdale Road, Surrey Hills $67,531 143sqm $472psqm<br>225 Canterbury Road, Canterbury $84,759 130sqm $652psqm<br>GF/207 Elgar Road, Surrey Hills $32,960 64sqm $515psqm<br>13-15 Hamilton Street, Mont Albert $89,414 143sqm $625psqm<br>96 Maling Road, Canterbury $48,500 57sqm $851psqm</p>
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<ul class="bullet-list"><li><p class="mb-4">Prestigious Surrey Hills location in Melbourne's affluent eastern suburbs, median house prices in Surrey Hills currently sit at around $2.3 million.</p></li><li><p class="mb-4">Secure rental income of $110,016 + GST + Outgoings per annum* (01/06)</p></li><li><p class="mb-4">Strong 5-year lease term with extension options beyond 2029</p></li><li><p class="mb-4">Premium retail space of 216m² designed by award-winning architects</p></li><li><p class="mb-4">Eight basement car parks enhancing tenant and customer convenience</p></li><li><p class="mb-4">Prime street exposure on busy Canterbury Road</p></li><li><p class="mb-4">Close proximity to newly refurbished Union Train Station</p></li><li><p class="mb-4">Solid lease covenant with 3 months security deposit</p></li><li><p class="mb-4">Tenant pays 100% of outgoings (except land tax)</p></li><li><p class="mb-4">Considerable depreciation benefits enhancing investment returns</p></li><li><p class="mb-4">Part of the prestigious Arbour Park development</p></li></ul>
