Super-Prime Burke Road Investment An Early Market Test
A generational prime investment opportunity on famous Burke Road, Camberwell is going to auction in an early test of Melbourne’s retail property market in 2021.
Fitzroys’ David Bourke and Chris James are marketing 751-753 Burke Road, Camberwell on behalf of a family that has held the asset for 45 years. The property goes to auction on Wednesday, 24 February at 1pm.
It comprises a dominant 2-level 420sqm freehold with an expansive 12.2m frontage to Burke Road, on a 465sqm Commercial 1-zoned site over 2 titles offered as a whole.
Mountfords Shoes, part of national retailer Munro Footwear Group, has been trading from the property for over 40 years and has a long 6 5-year lease returning $329,600 per annum plus GST, with annual 3% increases. Munro Footwear Group employs over 2,000 staff nationally and consists of leading brands such as Mountfords, Mollini, Diana Ferrari, Midas, and Colorado.
The property marks the first auction of a primely-located Melbourne retail strip asset for 2021.
“This is an ultra-rare opportunity to acquire an absolute prime Burke Road, Camberwell asset,” Bourke said.
“We expect interest from astute investors who are well aware of the historic opportunity to acquire a dominant site in the heart of one of Melbourne’s most famous shopping and lifestyle centres.”
The property is centrally located on the main pedestrian crossing linking Burke Road and council car parks, within the highly regarded Camberwell Junction retail and lifestyle precinct, and in proximity to all major supermarkets, banks, and national and local traders.
James said the property is a highly accessible position that enhances its connection to the expanded catchment that Burke Road and Camberwell Junction serve, situated on a large site with frontage to Commerce Lane the property provides future value add potential (STPA).
An abundance of medium and high density residential and commercial developments have been completed in recent times.
“Melburnians have been reconnecting with their local communities over the past 12 months. Neighbourhood strips have been the place to go for a coffee, to catch-up with friends, or to break up the day as working from home becomes more widely accepted,” James said.
“This has enhanced the investment prospects of well-located shopping strip assets.”
Melbourne CBD Building Sale Increases Corner Landholding
The Bank of China has divested 266-270 Queen Street in the latest sale of a Melbourne CBD building.
Regis Capital Partners bought the vacant 3-level, 767sqm building, on a 455sqm site, for around $15 million. One of the owners of Regis Capital Partners’ local branch, Tony Brady, owns 280 Queen Street next door through his Brady Group. The sale expands the landholding on the corner of Queen and Little Lonsdale streets to 1,745sqm.
The building was constructed in 1932 with 2 levels as the Australian headquarters of MGM, and expanded in 1981. The Bank of China paid $1.6 million for the property in 1994 and undertook refurbishments the following year.
Service Station Attracts 1st Time Buyer
A private investor making their first commercial property purchase picked up the BP Westernport Service Centre in Cranbourne for $20.3 million, at a 5% yield.
The 672sqm service station at 910 Thompsons Road is on a 1.98ha site with a 275m frontage to Westernport Highway. It is leased to BP, Carls Jr and Red Rooster, bringing $1.01 million pa and with a 10.7-year weighted average lease expiry.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2021 Fitzroys.