First of 15 Clarendon St shops released onto market
A mega selldown of terraces on South Melbourne’s iconic Emerald Hill has begun.
A portfolio of 15 properties along the Clarendon St shopping precinct are expected to hit the market in the coming months as two local investment companies start to offload their portfolios.
The first property to go under the hammer will be 338-340 Clarendon St.
And it has already captured the attention of local and international investors.
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The portfolio was acquired for $27.5 million in 2015 by Melbourne companies PodCo and Terraplex.
Since then there has been a decrease in retail vacancy rates along Clarendon St and an increase in the market value, according to CBRE research, making now an advantageous time to sell.
CBRE’s Rorey James said Emerald Hill stands as one of Melbourne’s oldest suburban boroughs, dating back to 1852.
“This historical precinct is known for its well preserved Victorian era streetscapes, leafy streets and is bolstered by the South Melbourne Town Hall located on Bank St,” Mr James said.
“Emerald Hill properties are very rarely offered to the market, with an average of less than one per year being offered in the past decade.”
The property is leased by Bendigo Bank with an annual income of $209,803 and a fixed three per cent yearly rental increase.
“Local and Asian investors and land bankers are looking to take advantage of the underlying land value and future potential given the large double shop front and rear laneway access,” James says.
“South Melbourne speaks for itself; recent population growth has been driven by a number of residential developments, with many more in the pipeline.”
PodCo director Anthony Wilson says they took on the project for the area’s investment attributes that “can’t be found anywhere else”,
“Direct access to the CBD, encouraging population growth, strong numbers of white collar employment, and proximity to tourist attractions make Clarendon St a true 24/7 activity precinct,” Mr Wilson said.
The property will be offered at a public auction on March 29 and 12.30pm.
A property rented by ANZ at 307-309 Clarendon St was sold for $5.7 million by CBRE in November 2016.
The last commercial property to change hands on Clarendon St in South Melbourne was a retail property at 302 Clarendon St sold for $2.95 million in September, CoreLogic records show.
This article from Leader Newspapers first appeared as “The first of 15 Clarendon St shops in South Melbourne set for sale”.