Ferny Grove Discount Drug Store sells post-auction for $1.1M

A COMMERCIAL asset home to the Ferny Grove Discount Drug Store has sold following successful post-auction negotiations for $1.1M at Lot 1/1300 Samford Road.

The site was a multi-income investment with APN Outdoor Group Limited operating a heavily upgraded digital signage on the common land.

The property was marketed and sold by Ray White Commercial Milton’s Associate Director – Investment Sales Matt Maranta and Sales and Leasing Executive Victor Du Bois.

Mr Maranta said it was a strong campaign throughout with significant interest coming from both local and state investors.

“We had more than 50 enquires during what was a very active campaign, with the property selling after post-auction negotiations on a 7.32 per cent yield,” he said.

“Potential buyers were drawn to the well-known tenants APN Outdoor Group/Discount Drug Store being in place, with a WALE of 2.9 years (on income).

“The chemist has been in operation itself for more than 20 years on the site and benefits from high traffic volumes and on-site parking.

“The net income produces $80,586.58 p.a.* and the property is in a well laid-out retail centre that has had recent refurbishment to its façade.”

Mr Du Bois said the area was prime retail strata that offered great tenant retention through feeder businesses and was primed to benefit from the upcoming $750M transit orientated development project.

“Samford Road is the main thoroughfare for a large residential catchment spanning from Keperra to Ferny Hills,” he said.

“A new $750M transit orientated development is set for a large increase in daily traffic on Samford Road westbound to the Ferny Grove train station, only 100m* from the site.

“The centre is made up in large part by tenants focused on health care with this pharmacy tenant, a medical practice, physiotherapy studio and QML pathologist on-site.

“The pharmacy tenant is also supported by patients from the Smartclinics Family Medical Centre next door.”

*Approximately.