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Not sure if you can purchase data on one centre with these guys or its subscription https://www.leaseinfo.com.au/about_centres_covered.cfm Other than that it might be getting a valuer to give an opinion.

Yes, that is what I was thinking. At no time in the last 3.5 years do they have the turnover to justify $104k in rental. And why is the rental in the last six months only $42k?

If that was the case I'd want a lot more than 5 or 6%. In the old days that might have been true and that is why the yields were more like 8 or 9%. Plus the current cost of money. That is where the lease comes in. A good lease will have a requirement for a Environmental Audit at lease...

That all depends on what the lease says. Petrol Station leases have gotten a lot better in recent years which helps reduce the risks associated with contamination. One of the reasons yields have fallen so much.

Yes, I pretty much agree with this. A lot of deals don't make sense on Aussie fundamentals until you realise the money was borrowed overseas at 2% and even 6% therefore looks good. Not sure what the depreciation in the $A did to that logic though.

You are talking about two different things there. One is the market value advantages of being close to a train station. The other is a risk issue where the banks want to be notified of potential issues of proximity to a train line. Not really the valuers fault as its part of the information...

Be interesting to see what the second valuation comes back at. If there are no sales it does make the valuer's job difficult and it's not really a surprise they are conservative. There is little time or incentive for them to throw out a high number that can't be supported by easily found...

Not sure on the cost but the only restriction on lease term in VIC that I know of is if it's subject to the Retail Leases Act 2003 the total term (including options) has to be at least five years. From memory the key to determining if a lease is subject to the Act is if the tenant "wholly or...

What you quoted from the valuation report suggested that costs associated with the subdivision had been deducted within the valuation calculations. Therefore the valuation is 1. The value "as is" not 2. the value it would be worth if subdivided. If I said to you that you could sell "Property...

The valuer will value it according to the instructions they receive from their client. If he wanted input into the way the valuation was instructed, he should have made a joint instruction.

Your original post is a little bit contradictory as you have said the amount was after development but then you also said it was a net realisation. More likely would be the Gross Realisation is after development and with the deduction of costs would be their "as is" valuation. That...

As others have mentioned, this only holds true if the market rental is going up at the same rate. At $9m market segment with an 8 year lease (assuming a new term?) 8.5% doesnt sound too bad but it really depends on the quality of the tenant and the security of the cash flow. For top notch...

It's just more risk for the Valuer. Just on a sum of money basis it's much easier to get sued on a $1.5million valuation than a $300,000 one.

That is interesting. Who makes the call that its "extremely difficult? I wouldn't think that a Valuer would as they always disclaim that they aren't legal experts but you say the valuation still came in at sale price? Or they valuation came in lower and the bank lent against the sale price anyway?

Generally $5 million and over Industrial property in Melbourne will show yields in excess of 8%. 3/991 Mountain Highway Boronia sold on a 9.75% market yield with a new 5 year lease early in 2013 (all details from memory and not exact!). Of course the property wasn't a prime asset, with...

If you are the landlord its usually not up to you if a lease it renewed unless the tenant is in breach of the lease conditions.

The first thing I would say about long term "37 year" long leases is that options are a generally a negative not a positive for the landlord. Option terms are there for the benefit and offer convenience for the tenant.

Critical point. Assuming the OP is in Melbourne its the Retail Leases Act 2003 which needs to be reviewed. In particular the sections on what outgoings can be claimed and Section 37(2) which covers the Market Rental review process. This section can/will usually override any special conditions...

As a general rule I would say net retail yields for freehold properties in non prime but well regarded strips in suburban Melbourne would fall from 4.5% to 5.5 or maybe 6%. For circa $550k your shop must be either small or be in a non-prime strip. I just hope you aren't in Bridge Road!

My guess would be there is no come back for a dodgy appraisal. If you want something with liability attached, talk to a registered valuer otherwise it's just a guess.