This article is from the Australian Property Journal archive
MELBOURNE’S iconic Witches in Britches has sold for $7.288 million on a tight 3.36% yield, following a competitive sales campaign.
78-86 Dudley Street, on the West Melbourne corner of King Street, sold days after the expressions of interest campaign closed, with the sales price exceeding expectations and reflecting a land rate of $9,822/sqm.
Josh Rutman, Nick Peden, Tim Carr and MingXuan Li from JLL, alongside Ian Angelico and Jarrod Moran from CVA, managed the sale on behalf of the vendor, the local owner of 27 years.
“Given the high-profile nature of the asset, it was no surprise to generate extremely strong interest with over 150 registered buyers and 6 formal offers submitted,” said Pedan, director at JLL’s capital markets team.
“There is no doubt that off-shore interest in Melbourne’s CBD and immediate fringe commercial property has increased recently and there is a very strong appetite for quality real estate.”
The successful purchaser is an experienced developer and has earmarked the property for redevelopment in the medium-term, despite the four level height limit.
“The iconic nature of the building was a significant drawcard and certainly added extra appeal to the asset with the opportunity to buy such high-profile Melbourne real estate extremely scarce,” said Rutman, executive director and head of JLL’s capital markets team.
The theatre restaurant Witches in Britches has run at the location for more than 30 years and brings in a net rental return of $245,203 per annum, with a five-year option to continue operations at the site.
The property spans 1,050sqm across two levels on 742sqm of prime Mixed Use land and includes functional retail/restaurant accommodation with a large dining hall plus first floor space, and a directly accessible rooftop.
“We saw interest from investors, developers but most interestingly owner occupiers looking to undertake hospitality uses and take advantage of the high exposure of the location,” concluded Angelico, managing director at CVA.
