A Dan Murphy’s store in Melbourne’s south-eastern suburb of Malvern has changed hands for the first time in more than 100 years for $21.1 million, reflecting a 3.45% yield.  

A private Melbourne family acquired the retail property, which had recently completed a major store refurbishment to convert it to the latest store format. 

The property was located just off the busy retail strip of Glenferrie Road and opposite the Coles supermarket.  

The deal reflected the sharpest yield for a Dan Murphy’s store nationally in more than five years. 

Colliers’ Directors of Retail Middle Markets Mike Crittenden and Tim McIntosh managed the highly competitive on-market campaign. 

Crittenden said the campaign received an incredible amount of interest. 

He said there was in excess of 350 enquiries from offshore and interstate investors, while local private investors dominated interest with 82% of all enquiries. 

“At the end of the campaign we received in excess of $200 million in offers, with most groups involved in the final stages of the campaign being private families living locally to the Malvern area,” Crittenden said.  

McIntosh said the sale result achieved was a strong message to the market that ultra-defensive freestanding retail investments backed by undoubted covenants, long lease tenure and attractive growth remained resilient in any market cycle. 

“The depth of competitive offers received is a reflection of the ongoing demand for strategically located metropolitan retail assets and the current lack of prime investment opportunities on market,” McIntosh said.  

Recent Melbourne retail deals include HomeCo’s sale of a large format retail centre in Knoxfield in the city’s east to Troon Group for $45 million in May, reflecting a 5% fully leased yield.  

In March, HomeCo Daily Needs REIT bought a Dan Murphy’s-anchored retail property in the Victorian city of Geelong from Wel.Co for $21.5 million.