Courtside gem served up in Melbourne
It’s rare for the strip of shops immediately south of Melbourne’s Kooyong Lawn Tennis Club to offer up one of its gems.
But next month, one lucky bidder could succeed in snaring the property at 473 Glenferrie Rd when agents Gorman Kelly take it to auction.
Facing what Aussies consider the spiritual home of tennis and the nation’s most posh club for racquet swingers, Kooyong Village is one of the most tightly held retail hubs in Melbourne.
Kooyong Village is one of the most tightly held retail hubs in Melbourne.
On 15 August, the premises now leased to long-standing tenant Kooyong Cellars will be put on the block with an expectation to sell for around $1.5 million, according to the agents.
“On any investigation, an informed investor would see that there are only some 15 freehold properties located along this exclusive section of Glenferrie Road,” says Gorman Kelly’s Chris Alcock.
“There has been little sales activity here for the past five years with only one recent sale, which shows just how tightly these Kooyong properties are held.”
The 174sqm ground floor and 75sqm, two-bedroom flat on the first floor are rented for almost $62,000 a year.
Kooyong Cellars has a five-year term plus option over the brick building, which has a 6.7m frontage on a 225sqm site and is zoned Commercial 1.
The property is opposite Kooyong Railway Station and just across the road from the one-time venue of the Australian Open.
Kooyong Lawn Tennis Club’s stadium seats 8500 and continues to host drawcard events, such as the four-day AAMI Classic exhibition tournament for selected, top-seeded players each January.
With more than 5500 members, the club potentially provides significant passing trade for the retail outlet going to market.
In fact, the proprietors trading from the shop to be auctioned may well even have served an ace player or two in their time.
DJs sale & leaseback in spotlight
The potential $600 million sale and leaseback that David Jones is contemplating for its prime Melbourne and Sydney stores will be among the commercial sector’s most closely watched deals.
Circling any transaction will be major domestic and global superannuation and property trusts, after the retailer’s takeover by South Africa’s Woolworths group.
Hogging somewhat less of the limelight was the recent $44.5 million sale and leaseback of packaging company Geminder Holding investment properties in Sydney, Melbourne and Perth.
Property fund manager CorVal paid $37.5 million for three premises leased by steel and plastic packaging company Pact Group Holdings, according to agents CBRE.
The potential $600 million sale and leaseback David Jones is contemplating will be closely watched.
They included a 18,019sqm Melbourne industrial facility at 13 Joel Court, Moorabbin, a 10,377sqm property at 406 Marion St, Condell Park, in Sydney and a 5370sqm building at 175 Bannister Rd, Canning Vale in Perth.
A fourth property in outer Melbourne suburb Scoresby was bought by investment managers Heathley for $7 million. The 7720sqm facility is leased to labelling enterprise P’Auer.
Both purchasers were represented by agents LOGOS Property.
CBRE says the CorVal properties were bought on the basis of a 15-year triple net leaseback, with the Scoresby asset sold on a 12-year leaseback to P’Auer.
Vendor chairman Raphael Geminder, whose company previously traded as Visy Industrial Packing, said the deals reduced the number of related property transactions with the ASX-listed Pact Group.
“It also delivers Pact Group a lower aggregate rental in the first year of occupancy and a sign on fee for the new leases with the incoming landlords. That’s a great outcome for all stakeholders,” Geminder says.
CBRE’s Chris O’Brien says the property portfolio’s sale attracted significant interest from commercial investors.
“Given the strength of the incumbent tenant, the industrial portfolio is considered to be one of the most highly regarded to be taken to market in recent times,” O’Brien says.
“The offering was particularly complex given the mid-campaign listing of Pact Group. However, the strategic contributions from LOGOS, CorVal, and Heathley proved critical to an already focused Geminder Holdings to obtain a beneficial result for all parties concerned.”
A taste of India in CBW complex
Indian eatery Tadka Boom is the latest business to have signed on with industry superannuation fund CBUS at its state-of-the-art CBW complex, on the corner of Bourke and Williams streets in Melbourne’s CBD.
The 90sqm food outlet will operate from Goldsbrough Lane, which dissects the two CBW commercial towers on the corner, according to agents Savills Australia.
The tenants are believed to have agreed to a yearly lease of around $1000 per square metre for a seven-year term.
The CBW ground-floor shops are popular with breakfast and lunch goers working in the financial and legal district.