ANZ branch sells on 5.4% yield

An ANZ Bank Branch in Boronia, Victoria, has been purchased by a private investor for $1.02 million, reflecting a yield of 4.62%. Competitive bidding at auction edged the sale price to $180,000 above the set reserve.
Located at 234 Dorset Road in Boronia, the property comprises a two storey 345 sqm bank branch sitting on a 320 sqm allotment.
ANZ Bank's seven year lease and five year option on the premises commenced on 1 April 2003, paying a current net rental is $55,390 per annum.
Selling agent Pam Phillips of JRD The Property People said there was very "spirited bidding" at auction with 60 people in attendance.
"We had a five week campaign which generated a lot of interest from investors," said Ms Phillips.
Reprinted with permission. The Australian Property Review. http://www.apr.com.au