Bill McNee to sell high profile Melbourne corner
Bill McNee has listed a double storey investment with development upside at arguably suburban Melbourne’s highest profile intersection.
Occupied since 1951 by National Australia Bank, the 531 square metre holding at 600 Chapel Street, on the south east corner of Toorak Road, South Yarra, cost the Vicland founder $16.2 million last August on a long settlement.
Though it was considered a passive investment, it was later speculated the developer was seeking to create an amalgamation for a landmark project.
That plan now seems off the table with Mr McNee in June selling another shop that would have formed part of that consolidation – 264-266 Toorak Rd – for $4.54m, a rise on the $3.25m he outlaid 19 months earlier.
Potential never realised: agent
Emmetts’ Charles Emmett, who is representing Mr McNee with Xander Yeo and Cushman & Wakefield’s Leon Ma and Daniel Wolman, said the “true flagship nature” of 600 Chapel St has never been realised.
The bank’s lease expires in 2027 when it then has two three year options; the ground floor rent – c$1220 per sqm, pa – is considered about half the market rate (story continues below).
The upstairs office, part leased to Trybooking until 2025, returns c$115,000 a year.
“Re-leasing the building in an open market setting would enable a future landlord to set their price in relation to rent,” Mr Emmett said.
“The building provides immeasurable branding opportunity that is not reflected in the current rental return,” he added.
“In addition to its 38 metres of absolute corner frontage, the building provides rich and attractive heritage features that high value discretionary retailers love and pay for,” according to the executive.
Vicland recently completed St Germain, at 495 Toorak Rd, Toorak – a nine storey office with ground floor Coles.
Subscribe to our newsletter at the bottom of this page.
