Popular Ashgrove retail centre up for auction for investors seeking passive income

Australians with the money to purchase a passive investment will have their eyes on a retail centre in Ashgrove going up for auction, for the first time since it was built in 2005.

The building at 20 Stewart Rd is the home of four small businesses that have all been in the area for more than a decade.

Most of the tenants at 20 Stewart Rd, Ashgrove, have been with the property since it was constructed.

Three tenants, including the popular Home Cafe, have leased the property since its construction, with the fourth arriving in 2014.

Since then, the businesses have become local mainstays in Ashgrove, receiving daily traffic from locals and those passing through the suburb.

RWC Retail will be auctioning the building on at the end of August, and has received more than 200 enquiries in the first two weeks of the campaign.

The building’s proximity to other Ashgrove spaces makes it a big buy for those looking to generate income through property ownership.

Joint Managing Director Michael Feltoe said properties similar to this can get up to 400 unique enquiries, due to the high demand for properties that provide a passive income.

“Fully leased retail centres in metropolitan Brisbane have been a popular asset class for private investors for many years, but especially so since mid/late 2020,” he said.

Mr Feltoe said this is believed to be due to local retailers showing “surprising resilience” as essential services during the pandemic, offering a consistent and reliable business for investors.

20 Stewart Rd’s tenants have net leases until 2029, contracted to pay all relevant expenses for the next five years.

“This is an ultra low maintenance passive retail investment. ” Mr Feltoe said.

Home Cafe Ashgrove has been at 20 Stewart Rd for almost 20 years, with hundreds of positive reviews across social media.

“Suburban retail is beloved for having local tenants with a strong connection to the community … nowhere is more prevalent than 20 Stewart Road, with the stores being favourites of the Ashgrove area.”

RWC Retail was unable to give an estimated price range for the property, due to there being no equivalent property sales in the area.

The 9:45am auction will take place on Friday August 30 at Level 26, 111 Eagle Street Brisbane City.