Buyer splashes $17m on key South Melb corner
A local investor has splashed $17.25m on the corner site at 131 Cecil St and 304 Coventry St, South Melbourne.
Investors are snapping up prominent corner positions in South Melbourne as major mixed use projects precede a population boost for the inner city suburb.
The $17.25m sale at 131 Cecil St and 304 Coventry St, South Melbourne, is one of the biggest in the suburb for some time.
Fitzroys’ Mark Talbot, Tom Fisher and Lewis Waddell, in conjunction with CBRE’s Trent Hobart, Nick Peden and David Minty, sold the 1391sq m property directly opposite South Melbourne Market.
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The agents acted on behalf of a Melbourne family who had held the property for 45 years.
The sale price was well above expectations and equated to a land rate of $12,402 per sqm.
Mr Talbot said the expressions of interest campaign generated 12 offers from private investors, syndicates, developers and occupiers from around Melbourne and Australia, as well as offshore.
“A local investor who knows the South Melbourne area well was the purchaser, attracted to the property’s excellent corner location directly opposite the famous South Melbourne Market, its proximity to the CBD, highly regarded tenants and future development potential,” he said.
The new owner is expected to renegotiate the leases, which presently generate a net return of almost $750,000, plus GST after land tax.
Chef’s Hat has occupied the building for 27 years.
The two-level building’s main lease is to Australia’s largest family-owned and operated hospitality equipment and kitchen supply store, Chef’s Hat – which has been in occupation for 27 years and runs to March 2026.
National homewares retailer Bed Bath N’ Table is on a monthly holdover lease.
“This was the perfect corner opportunity, ideally positioned in one of Melbourne’s most vibrant and fast-evolving inner-city precincts,” Mr Talbot said.
“South Melbourne ticks all the boxes – offering quality lifestyle and hospitality amenity, high accessibility, and home to strong residential and commercial development pipelines that are underpinning trade and activity prospects.
“Astute investors are considering South Melbourne to be Melbourne’s next Cremorne.”
While the South Melbourne market draws over 5.5 million visitors annually, the suburb’s mix of shopping hosts a diverse mix of boutique retailers, cafés, and specialty stores on Clarendon St – with both Coles and Woolworths supermarkets – and Cecil St.
A local investor has splashed $17.25m on the corner site at 131 Cecil St and 304 Coventry St, South Melbourne.
Fitzroys agents had previously handled the $5.5m sale of another corner property at 168-174 Dorcas St, with the winning offer from a land banking investor beating five others, including
occupiers and developers for the prominent two-level building of 1077sq m, plus basement carparking for 18 cars.
Construction on major mixed-use projects including Hacer’s 162-180 Clarendon Street and 182-200 Clarendon by Lowe Living is underway.
The projects follow on from a number of key commercial developments, including Deague’s 101 Moray, 122 Moray Street and The Terraces by Fortis, Eastern Road by I&D Group, Hickory’s Market Lane, and BVIA on BANK.
