Sensational Brighton Investment Leased to Powerhouse ASX-Listed Tenant Takes Off
Brighton has again reaffirmed its blue-chip status, as a rare retail investment property auction on arguably Australia’s premier shopping strip, Church Street, delivered a sensational result.

Fitzroys’ Mark Talbot and Tom Fisher sold 51 Church Street, home to powerhouse ASX- listed tenant Flight Centre, under the hammer for $4.45 million, on a very sharp 3.2% yield. A local purchaser won out of the 4 bidders who competed for the property at the auction, representing a mix of local and Asian-backed capital.

The sale price also reflected a high building rate of $39,732/sqm and land rate of more than $19,600/sqm.

Flight Centre, which has occupied the building for over 20 years, has renewed its lease until December 2028.

“Travel is back and the extended lease to Flight Centre was considered a real positive. The campaign showed strong confidence in the retail sector and also the travel industry,” Talbot said.

“Together with a lease term of 6 years, the asset was considered to be ‘risk-free’ by many in the market. This offered a secure, consistent cashflow from a quality global tenant at a time of sharemarket and residential market volatility. We’re seeing investors continue to put their faith in bricks and mortar assets,” Talbot said.

One of world’s largest travel groups, Flight Centre boasts a market capital of $2.9 billion and a vast leisure and corporate travel sales network that extends through Australia and New Zealand, North America, the United Kingdom, Europe, the United Arab Emirates, China, India, Singapore and Malaysia.

Flight Centre’s global corporate travel management network extends to 90 other countries through licensing agreements with independent local operators.

Fisher said, “Investors are always attracted to Church Street, Brighton’s ultra-low vacancy rate and premier tenants.” According to Fitzroys’ forthcoming Walk the Strip report, Church Street again retained the lowest vacancy rate of Melbourne’s iconic shopping strips in 2022, at an ultra-low 0.7%.

“Melbourne’s shopping strips have demonstrated their resilience over the past 2 years, and none more so than Church Street, Brighton,” he said.

51 Church Street enjoys a high level of foot traffic and is surrounded by some of Australia’s most popular fashion and lifestyle retailers that Church Street, Brighton is known for. It is close to both Woolworths and the iconic Dendy cinema complex, and sits amongst leading retailers including Scanlan & Theodore, Mecca, Witchery, Kookai, and major banks.

This was just the 4th sale along Church Street since September 2019 - and all 4 have sold through Fitzroys. They have included this year’s $16.2 million sale of 71-73 Church Street & 36 Carpenter Street, home to Nike, Ecco and Laurent, while the NAB branch at 35 Church Street sold for $6.105 million at a 3.5% yield 3 years ago, and 13 Church Street, home to international retailer Oroton, sold for $6.07 million last year at 2.5%.

“Church Street, Brighton is notoriously tightly held and we consistently see hotly contested campaigns culminating in very strong sales results,” Fisher said.

Gurner Buys Into Docklands Project
Developer Tim Gurner has taken a 50% interest in a 1.8ha Docklands development owned by the Liberman family.

The 208-226 Harbour Esplanade site, bounded by Wurundjeri Way, Dudley Street and La Trobe Street, has been operating as a car park and has approval for a 6-tower precinct.

The current plans for the site include 1,200 apartments, of both build-to-sell and build-to-rent offerings, a 200-room hotel, and at ground level a retail and commercial precinct, wellness centre, and public area with greenery and communal spaces.

It is part of a broader 4.4ha site that the Liberman family-backed Digital Harbour consortium, now known as City Harbour, acquired more than 20 years ago, and which has seen multiple office buildings completed at 1010 La Trobe Street and 1000 La Trobe Street.

Elsewhere in Docklands, local developer Mohan Du recently unveiled plans to build a $340 million project with 2 hotels and a 1,000-person convention centre next to the District Docklands shopping centre, and Mirvac is set to launch its 9th apartment building – a 45-level tower – at Yarra’s Edge.