OWNERS of a landmark Newtown butcher shop have secured the freehold to the store that has been held in one family more than 50 years.
They emerged with the contract for the corner property at a robust auction that pushed the selling price above $1.5m.
But they had their work cut out for them as a host of potential buyers lined up for the opportunity to land the prime corner property.
Darcy Jarman Newtown agent Tim Darcy said almost 90 groups made inquiries on the property at 17 Stinton Ave.
“It’s an iconic property and it’s had an iconic business in it, although with three different proprietors over a long period of time, but iconic both in terms of the operation of the business and by nature of its freehold position within Newtown,” Mr Darcy said.
“We had nearly 90 inquiries and there was probably 15 parties there to bid on the day.”
Five parties raised a hand at the auction, which opened at $1m.
Auctioneer Raoul Salter declared the property was on the market and selling as the reached $1.44m.
But that only attracted more bidders into the action.
It ended up selling for $1.512m.
Mr Darcy said it achieved a 3.66 per cent yield, with a land rate of almost $8000 per square metre.
Buyer’s advocate Tony Slack revealed he was acting on behalf of Enzo Raimondo, who had worked at the butcher shop for 35 years, eventually taking over the business, Enzo at Penny’s.
Mr Darcy said while it was a prime investment property in terms of holding and potentially adding value, at the end of the day it meant more to the motivated tenant.
“Clearly with a business in situ like that, when the tenant is in a position and wants to buy it, it means more to them than anyone’s eyes,” he said.
“Particularly at the pointy end there was two other parties driving it pretty hard.”
The vendor was Denis Penny, son of the late proprietor Henry Penny.
“In the end a really pleasing outcome that Enzo was able to get it,” Mr Darcy said.
“The fact the tenant has got the resolve to go and buy it. He’s not going anywhere and people knew the business was not for sale and he’s not going anywhere, so all those things help in the end.”
MEANWHILE a large-scale Grovedale shop attracted a big price when it sold for $3.36m at auction.
The tenanted investment has been leased to the Brotherhood of St Laurence for 25 years and attracts a $129,600 a year rent.
The community store recently signed a three-by-three year lease on the property at 129-124 Torquay Rd.
The 2007sq m property has a 30m frontage to the Surf Coast Highway and comprises two titles.
Bidding opened at $2.5m and attracted interest from several bidders.