The historic Hawthorn East building home to popular eatery Meat & Wine Co, prominently positioned on Camberwell Junction, has served up an investor feeding frenzy.
Fitzroys agents Chris James and David Bourke sold the corner Burke Road and Riversdale Road property under the hammer for $4.75 million, at a 4.05% yield after intense competition between four bidders.
The iconic brick character building was constructed in 1885 for the English, Scottish and Australian Bank, which specialised in financing suburban builders in the area. In recent years, it was transformed into The Meat & Wine Co. in line with the adjacent Aerial residential development.
It sold with a long lease with an estimated net return of $193,000 per annum plus GST, and has nine secure undercover parking spaces on title.
The property overlooks Camberwell Junction - the busy intersection of Burke Road, Camberwell Road and Riversdale Road - a major landmark in Melbourne’s popular leafy inner-eastern suburbs, and between the Camberwell and Hawthorn East retail, lifestyle and commercial precincts.
James said more than 100 enquiries were received throughout the campaign from local and offshore parties, with private investors trading the asset.
“Well-located retail properties with strong tenancy profiles continue to be highly sought after by investors.”
Bourke said the enquiry received and strong auction result reflected the confidence in the area’s revitalisation, spurred by a strong residential development pipeline.
“Developments such as Camberwell Village, Hawthorn Park and others nearby have underpinned enquiry from investors and tenants alike through the inner-east, providing growth in the immediate catchment and boosting trade in the area,” he said.
“Commercial and residential developments have further accentuated the extended trading cycles of Melbourne’s retail strips, and added to their vibrancy.”
According to Fitzroys research for Volume 2 of its Walk the Strip report, the iconic Burke Road retail strip saw vacancy tighten from 6.0% to 2.4% over the 12 months to June 2018.