AN INVESTOR has splashed significant cash on a retail site in Clayton, buying the building a whopping $1.3 million over reserve.
NAB’s Clayton bank and a martial arts studio at 348-350 Clayton Rd soared to $4.7 million at auction on Thursday.
Seven bidders raised their hands across half an hour, with the final price landing way above reserve.
RELATED: Clayton house prices rise as promised public transport sparks interest
Four neighbouring homes on Clayton Rd combine for mega sale targeting developers
Clayton South townhouse backing onto huge reserve steals downsizer’s hearts at auction
The NAB bank had a long-term lease agreement at the site.
CBRE’s Nic Hage said the auction involved aggressive bidding, with four Asian buyers entering the race after the building was called on the market.
“We had local investors interested until about $3.5 million, and then the last five bidders were foreign investors,” he said.
“The buyer plans to hold the site as a passive investment.”
The building backs onto a large council carpark.
The two-storey site had a long-term tenancy agreement with NAB and the United School of Martial Arts that operates on the first floor.
The buyer will initially reap an annual income of more than $173,000 from the investment.
CBRE’s Rorey James said the buyer was educated about Clayton’s investment potential.
“They were attracted to the precinct because of the supermarket, shops and train station,” he said.
“It has a highly convenient location on Clayton Rd.”
The buyer was attracted to the busy shopping hub.
The property last sold for $3.505 million in 2014, CoreLogic data shows.
CBRE’s Sandro Peluso said Asian investors were still competing strongly in Melbourne’s commercial market.
“Fifteen of our last 19 auctions have sold to Asian investors,” he said.
More than 100 people attended the competitive Thursday afternoon auction.
SUBURB PROFILE: Clayton
READ MORE: Five-level conversion hits South Yarra market
Grand beauty poised to smash Sandringham record
Altona house with Harry Potter and Alice in Wonderland themes set for auction block