Investor picks up suite deal in Canterbury heritage landmark

Office space in a landmark building east of Melbourne leased to the same tenant for more than two decades has changed hands for $1.555 million.

The sale at auction to a private investor was on an indicative return of 5.7 per cent, according to agents Gray Johnson.

Suites 4 and 5 at 208 Canterbury Road, Canterbury, are a combined 185 square metres on the ground floor of the former Malone Family Hotel, which was built in 1889.

The property has marble floors, high ceilings and original fireplaces.

The combined office suites are are on the ground floor of the former Malone Family Hotel, built in 1889. Photo: Gray Johnson

Gray Johnson director Matt Hoath said long-established tenant Canterbury Eye Specialists, which had occupied the premises for more than 20 years, used the exclusive street level entry from Wattle Valley Road.

“This building is a local landmark and is the first major building only a short distance east of the former Australia Post Canterbury Post Office which also sold at auction recently for $7.4 million on an indicative yield of only 4 per cent,” Mr Hoath said.

“I consider the return of 5.7 per cent as attractive for a premium medical support services investment.”

The tenant started a new six-year lease in January and has a six-year option to renew.

The first-year rental is set as $88,000 net with inbuilt rental increases fixed at 4 per cent and a market review at the option exercise date.