The north-west Melbourne satellite town of Sunbury has proved popular with Sydney and Melbourne commercial property investors with three properties selling recently on strong yields.
The top yield was achieved for a Sunbury childcare centre on Cornish Street, which sold privately for $2.31 million, equating to a sharpish yield of 8.45%.
The property is leased for 10 years with a 10 year renewal option to G8 Education – ASX listed operator with over 130 centres across Australia.
The property was marketed by Burgess Rawson’s Adam Thomas, who has sold a number of childcare centres over the course of the year including in Doncaster, Sydenham, Maribynong and Cranbourne,
The premises of a Subway store, with a five-year lease and renewal options to 2024 on the corner Station & Evans Street in Sunbury, sold at auction last week for $610,000 on a yield of 6.55%.
The price exceeded the reserve by around 10% and was picked up by a "cashed-up Melbourne investor" according to Thomas.
And the 940 square metres premises of two showrooms leased to national car repair firm Midas and tyre retailer Beaurepaires until 2019 sold under the hammer for $2.9 million - $100,000 above the reserve on a yield of 6.25%.
Thomas says the sales demonstrate the appeal of Sunbury as a town in its own right and the appeal of commercial properties with strong and secure tenants.
Sunbury, about 40 kilometres north west of Melbourne, has a population of around 30,000 people.