This article is from the Australian Property Journal archive
A FULLY leased investment and landbank opportunity in Melbourne’s Kew Junction precinct has hit the market for the first time in 30 years, with expectations of circa $10 million.
Located at 4-14 Walpole Street in Kew, around 5km east of the CBD, the 1,570sqm site comprises a dominant 1,296sqm single-level building with 10 fully occupied shops and a rooftop car park accessed off Walton Street providing 46 car parks.
David Bourke, Chris James and Ben Liu from Fitzroys are managing the sale of the property, which has 12 individual titles to be offered in one line, via an expressions of interest campaign.
“This is an ultra-rare opportunity to secure a landmark property in a blue-ribbon suburb with excellent landbanking attributes, with an established cash flow and rental upside, and considerable future redevelopment potential,” said Bourke.
The asset currently brings in returns of $422,700 per annum, with retail tenants including Jade Kew Restaurant, Buoy Pizza, Beejans Bakery Café, LivFit Physio Kew and Skin & Brows, who hold leases ranging from three to five years plus options.
Zoned Commercial 1, the property sits on a corner site with 47.74 metres of frontage to Walpole and 33.15 metres to Walton Street.
It also benefits from its placement across from a strong-performing Woolworths supermarket and its close proximity from the corner of High Street.
The asset is within the Kew Junction Activity Centre and Design and Development Overlay 14 DDO14, which allows for a building height of up to 18 metres (STPA) and uses including retail, residential, commercial and mixed use.
“Kew is widely recognised as one of Melbourne’s blue-ribbon suburbs, with an affluent and established catchment and high median house price that supports strong trade for retailers and operators,” added Bourke.
“There’s also been significant medium-density residential development undertaken in the area, catering for downsizers as well as attracting a new generation of young professionals and families to its hospitality and lifestyle offering, particularly at a time of flexible working arrangements.
Kew is supported by strong demographic fundamentals, with a median house price of $2.81 million and median unit price of $802,944, while its population is forecast to grow by almost 20% by 2041.
With the area also well-serviced by public transport, including Route 48 and 109 trams and multiple bus routes providing links to the CBD and wider metropolitan Melbourne.
This on top of several nearby main arterial roads including the Eastern Freeway to the north and CityLink to the south.
“We’re again seeing more people gravitate to well-connected inner-city locations with high- quality hospitality and lifestyle amenity to live, work, shop and play. In turn, we’re also seeing a growing pull for businesses to establish offices in Melbourne’s inner east,” concluded Bourke.
The expressions of interest campaign is scheduled to close on 30 August.
