Office converted Bunnings sells following short campaign
A local investor has swooped on an office converted Bunnings in a prestige car dealership hotspot at Collingwood.
The 7430 square metre two storey outlet, 179-201 Victoria Parade, is speculated to be trading for over the c$65 million guide – meaning a yield of less than five per cent.
Burgess Rawson’s Yosh Mendis, who marketed the property for the Holckner family with Beau Coulter and Zomart He, added the price is the third highest outlaid for a Victorian freestanding Bunnings.
Mr Coulter said the deal was conditional three days following the close of an expressions of interest campaign (June 27). The campaign ran four weeks.
Also on the market is a Bunnings backed store at the Chadstone Homemaker Centre, with c$80m price hopes.
Stonebridge’s Justin Dowers, Philip Gartland and Kevin Tong with JLL’s Stuart Taylor, Nick Willis, Tom Noonan, Sam Hatcher and MingXuan L are representing that seller, Newmark Capital.
Development upside
On a 5375 sqm Commercial 1 zone site, also with frontage to Cromwell and Islington streets, the Collingwood property has significant development upside, with the zoning allowing for 14 floors, but nearby projects rising 23.
The site’s southern edge, abutting the multi-lane Victoria Pde, wouldn’t face overshadowing objections, the agents added (story continues below).
That road is the border with East Melbourne, where the median three bedroom apartment fetches $1.83m, according to REA Group.
The area also has a high concentration of prestige car dealerships including a Porsche outlet at 109-111 Victoria Pde.
In March we reported Neville Crichton snapped up adjoining buildings covering 2312 sqm at 165-177 Victoria Pde – between the Porsche and Bunnings.
A Maserati outlet is expected there.
The Sydney based car importer owns several other properties in the pocket.
“The [Bunnings] asset provided one of the largest individual holdings in the area with the property attracting keen interest from a diverse range of buyers, domestic and international,” Mr Mendis said.
Mr Coulter added the Weighted Average Lease Expiry will be 3.1 years at settlement.
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