Fitzroys agents Mark Talbot and Tom Fisher auctioned 432 Centre Road sold for $2.165 million under the hammer, at a 3.3% yield.

Centre Road, Bentleigh has confirmed its status as one of Melbourne’s best-performing shopping strips, with Fitzroys delivering a second investment sale in a month in the sharp 3% yield range.

The property has a long 5+5+5-year lease to café Little Tommy Tucker, which has quickly become a local favourite - recently being voted the best brunch spot across Melbourne, Stonnington, Port Phillip Councils and Caulfield region after a call-out from renowned chef Matt Preston.

Four bidders competed 432 Centre Road auction following a well-run, high-exposure campaign that generated more than 70 high-quality enquiries.

The sale follows Mark Talbot and Tom Fisher’s sale of 488 Centre Road for $1.68 million, also under the hammer, on behalf of vendors that had owned the property for 36 years. An investor bought the property at a sharp 3.1% net yield following an auction the saw spirited bidding from nine parties. AXS-listed Domino’s has a long 5+5-year lease over the property.

Talbot said food and beverage-tenanted investments are popular at the moment.

“Quality food and beverage operators have demonstrated a resilience during the COVID period, having been able to continue trading throughout periods of lockdown and other restriction measures.

“Well-located bricks and mortar assets with quality leases in Melbourne’s shoppin”g strips continue be highly sought-after during the COVID period, as well as in the ultra-low interest rate environment.”

Talbot said Centre Road’s triple supermarket offering of Woolworths, Coles and Aldi drew custom to the strip throughout the COVID period and maintained activity.

“Shopping strips have been the place to get a coffee, something to eat, meet friends for a walk, or break up the day while we were working from home. Cafés and eateries located in high-performing strips have benefited from the extra activity drawn to the location.

Talbot said the high volumes of enquiry received from local and interstate investors throughout the campaigns and the sharp yields achieved reflect the high regard that Centre Road, Bentleigh is held in.

According to new Fitzroys data for its forthcoming Walk the Strip report, Centre Road has been among the best-performing shopping strips throughout the COVID period. Fisher said the strip the major shopping precinct in the region with circa 29,500sqm of retail floor space, a status underpinned by a solid catchment area and its high accessibility via car, with a large volume of on-street and Council car parking, Bentleigh train station and multiple bus routes.

“Centre Road is developing a high-quality hospitality offering. Little Tommy Tucker is now recognised as one of the best cafés and brunch spots in the bayside region, and is close to new bar Sonder, which has added a new nightlife dynamic to the strip.

“Glen Eira Council has just unveiled plans for a new Eat Street precinct only a few moments away at Vickery Street that will bring further quality offerings and street activation.”

Centre Road was transformed by the Victorian government’s rail crossing removal initiative in recent years, which has enhanced pedestrian and traffic flow around the busy station and attracted additional retailers to the immediate area.

To request a sales analysis please email either of the selling agents at Fitzroys via the below contact forms.