Shop Sells In Village Auction

The freehold of 79 Silverdale Road - presently Aniseed Cafe - has changed hands after being passed in at auction.

The auction was conducted by agents Jellis Craig on 31 May.

Bidding quickly rose from $600k. to $700k., before stuttering along to $746k.

The property was then passed in.

Negotiations after the auction have resulted in a sale, but the final price is unknown. An unconfirmed report suggests over $800k. was achieved.

This would be in the ball park price paid for an adjoining property of a similiar size and age a couple of years back.

Based on a conservative sale price of $750k. the $25k nett rental return advertised  for the 184 sq. metre land (64 sq. metre shop) is around 3.3% p.a.

The land value calculation for this commercial property is approaching $4,900/sq metre.

The relatively low annual yield compared to interest rates implies the successful bidder has confidence in the capital growth potential of the property.

Eaglemont's Voice understands the Aniseed Cafe business has been operating on a month by month lease basis for some time.

The property was offered with approved redevelopment plans as a combined retail and residential property.

The underbidders included at least one local business - other owners were observed to be closely watching the auction.

We understand the vendors - who live locally - want to reduce the size of their property portfolio.

The fate of the Aniseed Cafe business is unknown at this time.

We hope for Sally and Susan's sake that this era of uncertainty soon comes to a satisfactory resolution.

Aniseed Cafe has operated a popular service on the site since November 2016.