Melbournes Mega Mile precinct selling under the hammer for $2.805 million - more than $500,000 above reserve. Mark Talbot and Lewis Waddell of Fitzroys sold 428 Whitehorse Road, Nunawading, in conjunction with James Glen and Andrew Pannam of Nichols Crowder. 

Investors have boldly demonstrated their faith in Melbourne’s retail environment, with a vacant showroom in the Mega Mile precinct selling under the hammer for $2.805 million - more than $500,000 above reserve.

The agents sold the property on behalf of long-term owners, who were founding partners of electronics giant JB Hi-Fi - now an ASX-listed company. A local investor is the new owner, and will look to lease out the property.

The flexible 445sqm showroom has high exposure to busy Whitehorse Road with a large 16.85m frontage, and features rear access from Humphreys Avenue.

“Enquiry during the campaign came from investors and owner occupiers. Despite being offered with vacant possession, bidding came down to multiple investors, and the spirited competition pushed the sale price $505,000 past the reserve,” Talbot said.

“The remarkable result demonstrated the rare opportunity on offer to acquire a high- exposure showroom of this size in this tightly-held precinct, and the faith investors have in Melbourne retail.”

Based on a potential rent of around $100,000 per annum, the result shows a circa-3.5% yield.

“The showroom is located within a popular large format retail precinct, a sector that has managed to perform strongly throughout the COVID period,” Talbot said.

Among the surrounding tenants are JB Hi-Fi, Harvey Norman and Nick Scali, all of which have recorded robust sales results in 2020, as well as Amart Furniture, Burson, Hyundai, Jeep, and Alfa Romeo, among others.

Waddell said the property’s prominent position on Whitehorse Road, near the intersection of Rooks Road and close to Springvale Road and Eastlink, was another major drawcard.

 “The established precinct attracts a large number of customers from the immediate catchment of Nunawading, but also reaches to neighbouring suburbs given the property’s high accessibility,” he said.

“Well-located assets continue to remain popular with buyers looking for strong retail property fundamentals.”