Developer snaps up 13 shops on Armadale fashion strip
Big spenders aren’t uncommon among the bridal shops and boutiques along High St, Armadale.
But an approximate $25 million spending spree has ended with 13 adjoining shops between 1167 and 1193 High St, including Aya Teppanyaki and the Steinwway Piano Gallery, changing hands.
A private investor had held the titles, with investment and development group GLG buying the shops as a long-term investment.
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The purchases were a significant vote of confidence in the popular shopping strip, according to Stonnington mayor Steve Stefanopolous.
“Nothing that big has changed hands that I can think of in recent years,” Cr Stefanopolous says.
The popular shopping strip has gone from strength to strength in recent years.
The rents are quite low, and they will look to improve those over a period of time, and they paid the premium for development potential in the future
“It’s a great precinct. The vacancy rate is very low, the lowest I have seen in 30 years, and the tenants have been going from strength to strength.”
Cr Stefanopolous says while the shops themselves are not subject to heritage overlays that apply to much of the strip, a number of strong leases in place would prevent any short-term development at the site.
GLG director Campbell Blennerhassett confirmed their initial interest is in having assets in the popular strip, but notes the long-term potential for development added to the appeal.
“Down the track it potentially could one day offer a redevelopment of the site,” Blennerhassett says.
“But there are some long-term leases there, so at the moment it’s just about income.”
He adds that the rising strength and diversity of both High St and Armadale’s business profile had made them comfortable spending about $25 million on the shops.
Head of the High St that’s Armadale group Hans Marti echoed the comments, saying there is renewed confidence in the area.
It’s a great precinct. The vacancy rate is very low, the lowest I have seen in 30 years, and the tenants have been going from strength to strength
The operator of boutique retailer Swisstime HQ, Hans says the big spend by GLG had validated the achievements of the strip in recent years.
“Confidence really has returned to High St,” he says. “We are fairly positive about the strip.”
Appropriate development, particularly on the north side of the strip which could block sun to the area if overdeveloped, could add to the area — providing more demand for restaurants and a presence from people in the evenings, which was perhaps the only ingredient missing at the popular strip.
Allard Shelton director Michael Ryan helped facilitate the deal, which while finalised in October only emerged publicly in the days leading up to Christmas last year.
Ryan says the purchase had come with a yield of just 2.7%.
“The rents are quite low, and they will look to improve those over a period of time, and they paid the premium for development potential in the future,” he says.
This article from Leader Newspapers was originally published as “High St, Armadale, gets high-priced vote of confidence”.