This article is from the Australian Property Journal archive
A PRIVATE family is looking to capitalise on the growth through Melbourne’s eastern fringe town of Yarra Junction, putting the Woolworths-anchored Yarra Junction shopping centre to the market with expectations of fetching circa $20 million.
Located on the Warburton Highway, the 3,501 sqm centre is on an 8,230 sqm site zoned Commercial 1 with dual access and a wide street frontage. It has 11 specialty stores include an optometrist, bakery, chemist, and Bendigo Bank, for a combined return of circa $1.3 million per annum net.
CBRE’s Justin Dowers and Mark Wizel are marketing the property via expressions of interest closing November 29.
“The centre has had a strong trading history for over 25 years, and has continued to benefit from a consistent growth in population in addition to tourism within the Yarra Valley region.
“Due to increasing demand for retail services in the Yarra Valley region including Yarra Junction Shopping Centre, there is a clear opportunity to add value to this centre. There is a clear undersupply of quality retail services in the location and this centre is very well placed to benefit from any capital investment,” Dowers said.
Baby boomers and younger families are being drawn to the Yarra Junction area due to the relatively affordable residential property market and improved lifestyle conditions.
CBRE research shows neighbourhood centre sales were up 28% to $2.28 billion in the 12 months to the end of June, compared with the $1.78 billion in sales in the same previous period, while shopping centre sales had risen 86% overall in the last financial year to $6.817 billion.
Wizel said a market trend towards retail property investment that offers a defensive investment and strong underlying land value is now expected.
Meanwhile, developer Morry Schwartz has put his high-profile Melbourne city IGA supermarket on the corner of Collins and Spencer Street to the market, part of a retail complex at the base of the 28-storey Liberty Tower opposite Southern Cross station than Schwartz and his brother Danny nearly 20 years ago.
Similarly, some $20 million is expected when the 639 sqm property goes to auction on November 30 as part of a CBRE portfolio auction. It has eight tenancies, including a Gloria Jeans, and brings a total of $943,800 per annum net.
Late last year, the wealthy Schwartz family sold off a portfolio of Melbourne CBD east end assets, including the city’s oldest pub, the Duke of Wellington, for a combined $92 million.
Separate buyers purchased the 167-year old pub and an adjoining office tower, at 2 Russell Street, as well as the 65-room Adina Hotel at 88 Flinders Street.
Australian Property Journal
