This article is from the Australian Property Journal archive
MELBOURNE-based property investors PodCo and Terraplex have sold another two South Melbourne shop and dwelling properties as part of its Emerald Hill Terrace portfolio divestment.
CBRE’s Rorey James, Mark Wizel, Nic Hage and JJ Heng sold 338-340 Clarendon St property to a local investor under the hammer for $3.95 million. The 276 sqm building has a short-term lease to Bendigo Bank.
They also sold the 184 sqm property next door at number 342 for $2.175 million, at a 3.8% yield, also to a local investor.
PodCo and Terraplex acquired the portfolio in early 2015, and have since subdivided the landholding into 15 separately titled retail and residential offerings.
James said the result of Bendigo Bank, and the strong depth of interest received throughout the campaign, provided further confidence in Clarendon Street as one of Melbourne’s top performing retail strips.
“Having several groups miss out worked in our clients’ favour, and as a result we were able to transact the neighbouring property, for a particularly sharp yield, on their behalf.”
PodCo director, Anthony Wilson said direct access to the CBD, proximity to tourist attractions such as South Melbourne Market and Albert Park Lake, and a development pipeline comprising over 1,800 residential apartments and over 90,000sqm of forecast office space makes Clarendon Street one of Melbourne’s most progressive locations and a hotspot for retail activity.
The CBRE agents are offering the next property in the sell-down in conjunction with Dixon Kestles. The double-fronted 350-352 Clarendon Street, South Melbourne property comprises four apartments and two retail shops, and is expecting in the high-$3 million range.
According to CBRE Research, South Melbourne and Clarendon Street retail vacancy rates have declined from 6.2% in Q1 2015 to 0.7% in Q2 2018, and yields have compressed by around 160 basis points.
Australian Property Journal
