Tasty Yarraville investment: Pizza, gelato and passive income
Sitting on a prominent 329-square-metre corner site, the dual-title property at 175 & 175b Somerville Road comprises two fully self-contained shops, each secured by a long lease to an established hospitality operator.
The venues return a combined $103,449 per annum plus GST with fixed annual increases and tenant-paid outgoings, providing investors with built-in rental growth.
Augustus Gelatery is one of the tenants and has established itself as a well-known national brand with a network of 41 stores across Australia, alongside local operator Red Tomato Pizza & Pasta, which is a local favourite for a carb-fuelled dinner.
Director at Fitzroys, Chris Kombi, said while it was still early in the campaign, he expects the listing to appeal primarily to passive investors seeking reliable returns backed by strong tenancy profiles.
“It’s only just launched, so it’s difficult to fully gauge at this stage, but it’ll be investors looking for a good return with long leases from established tenants,” he said.
Kombi added that, with the long leases already in place, the listing is more likely to attract investors than hospitality operators.
“Hospitality operators are generally looking for vacant possession opportunities, whereas this is a set-and-forget investment with income security.”
Beyond its immediate income, the property also offers a compelling value-add angle, with additional land at the rear of the site not currently utilised by the tenants that could be developed, subject to council approval.
Positioned on the corner of Somerville Road and Loch Street, the property also benefits from strong exposure and accessibility, with over 14 metres of street frontage and connectivity to major arterials, including Williamstown Road and Geelong Road, as well as the West Gate infrastructure upgrades.
Just six kilometres from Melbourne’s CBD, it’s surrounded by a dense and growing residential catchment, alongside nearby schools, recreational facilities and retail amenity, all factors that continue to underpin demand for neighbourhood-focused retail.
“It’s not just about passing traffic, these businesses really benefit from the local community,” Kombi added. “There’s strong residential density, schools nearby and a shopping centre within close proximity, which all help draw consistent trade.”
Long considered one of Melbourne’s trendier inner-west suburbs, Yarraville has undergone significant evolution over the past decade, with its village atmosphere, growing hospitality scene and proximity to the CBD continuing to attract both residents and investors alike.
“It’s definitely a suburb that’s been on investors’ radar for a while now,” Kombi said.
