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A great supply of delicious pies and cakes has kept business thriving for an east Melbourne bakery, and it also drew in bidders with deep pockets.
The Muddings Kingsway Bakery has been in Glen Waverly for more than 20 years, and when the hammer finally went down, the property sold for more than $4 million.
“We had six registered bidders battling it, and it took a massive 49 bids to move the opening offer of $2,600,000 all the way up to the $4,070,000 sale price,” Ray White Commercial Glen Waverley’s Ryan Trickey said.
There was a lot of interest in the early stages of the bidding, but once it got beyond $3.3 million, it was experienced investors who own other assets in the market who drove the bidding.
“The bidding eventually got down to $1,000 bids, with the knockout bid being just $5,000. This highlights the competitive forum that is an auction.”
There were about 100 people at the auction, and Mr Trickey put the keen interest down to the areas being a really strong and up-and-coming activity centre.
“There is simply zero activity, it falls back to the age-old question of supply and demand,” he said.
The same family has owned the property for more than 30 years, and the rent paid by the current tenants could be considered lower than the market rate, which is why bidding started at $2.6 million, Mr Trickey said.
The area is a food and entertainment hub which is also experiencing exceptional growth, Ray White’s Ben Ainsworth said.
“The Glen shopping centre is undergoing a $500 million-plus re-development, which is funnelling new residents and business into the area.”
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