The historic Hawthorn East building home to popular eatery Meat & Wine Co, prominently positioned on Camberwell Junction, has served up an investor feeding frenzy.
Fitzroys agents Chris James and David Bourke sold the corner Burke Road and Riversdale Road property under the hammer for $4.75 million, at a 4.05% yield after intense competition between four bidders.
The iconic brick character building was constructed in 1885 for the English, Scottish and Australian Bank, which specialised in financing suburban builders in the area. In recent years, it was transformed into The Meat & Wine Co. in line with the adjacent Aerial residential development.
It sold with a long lease with an estimated net return of $193,000 per annum plus GST, and has nine secure undercover parking spaces on title. The property overlooks Camberwell Junction - the busy intersection of Burke Road, Camberwell Road and Riversdale Road - a major landmark in Melbourne’s popular leafy inner-eastern suburbs, and between the Camberwell and Hawthorn East retail, lifestyle and commercial precincts.
James said more than 100 enquiries were received throughout the campaign from local and offshore parties, with private investors trading the asset.
“Well-located retail properties with strong tenancy profiles continue to be highly sought after by investors.”
Bourke said the enquiry received and strong auction result reflected the confidence in the area’s revitalisation, spurred by a strong residential development pipeline.
“Developments such as Camberwell Village, Hawthorn Park and others nearby have underpinned enquiry from investors and tenants alike through the inner-east, providing growth in the immediate catchment and boosting trade in the area,” he said.
“Commercial and residential developments have further accentuated the extended trading cycles of Melbourne’s retail strips, and added to their vibrancy.” According to Fitzroys research for Volume 2 of its Walk the Strip report, the iconic Burke Road retail strip saw vacancy tighten from 6.0% to 2.4% over the 12 months to June 2018.
Melbourne Lennox College has leased a whole floor office at 260 La Trobe Street on the corner of Elizabeth Street, marking the next step in the building’s evolution amid a boom in student accommodation and residential development through the Melbourne CBD’s northern precinct.
Fitzroys Manager - Agency, Stephen Land negotiated the four-year lease over 406sqm within the A-C Building at $152,250 per annum plus GST, on behalf of Landream.
The space had been previously tenanted by ProBuild as a site office for UEM Sunrise’s 88- level Aurora apartments and serviced apartments development next door.
The lease comes shortly after Fitzroys’ Alex Shum and Terence Yeh negotiated a long-term deal with fast food major Hungry Jack’s across the 500sqm ground floor of 260 La Trobe Street.
Hungry Jack’s will use the space as its new CBD flagship, looking to capitalise on the residential and student accommodation development boom through the north of the city, which has also prompted a flurry of enquiry from Asian-based retailers and hospitality offerings.
Lennox College specialises qualifications for business, leadership and management for high-growth industries, and states that its mission “is to train the future workforce of Australia and the Asia Pacific region”.
Land said Lennox had previously been located on St Kilda Road and was looking to secure a space in the CBD.
“The space received enquiry from education operators, immigration consultants and construction companies given its positioning close to universities and education institutions, and student accommodation and residential developments,” he said, adding that its positioning close to Melbourne Central was also a drawcard.
“The current use of the premises was for office, and the tenant will be undertaking the required work and permits to operate under their intended use.”
The pipeline of new purpose-built student accommodation projects nearby in the city includes a 300-unit development by Singaporean group Wee Hur at 185 A’Beckett Street, and Scape Student Living’s 61-level, 800-bed tower at 97 Franklin Street.
On the northern fringe of the city, Scape has just purchased 558-566 Swanston Street site with a permit for a 12-storey, 159-apartment tower, and will soon begin construction on its 650-bed 557 Swanston Street development on the former CUB site.