Prime Puckle Street Freehold Sold Under The Hammer

Posted on 20th January 2023

Puckle Street’s ongoing strong performance and its place at the seat of the generational Moonee Ponds development boom continue to attract investors from Melbourne and around Australia.

Fitzroys’ Chris Kombi and Ervin Niyaz sold 93 Puckle Street under the hammer for $2.125 million, on a sharp 3.7% net yield, on behalf of a private investor.

A private local buyer was the purchaser, one of three bidders at the auction following strong enquiry during the campaign that included local and interstate investors.

The high-profile two-level 180sqm building is positioned on a 160sqm site in the core of Puckle Street. It comprises a ground level Japanese restaurant with dining area, commercial kitchen and storage leading to an expansive four-bedroom dwelling with bathroom on level one. Popular eatery Mizu Sushi has a renewed 5+5-year lease.

“Investors were looking to get into what is a traditionally strong retail strip with excellent trading prospects due to the ongoing completion of a number of new buildings surrounding Puckle Street,” Niyaz said.

According to Fitzroys’ new Walk the Strip report, Puckle Street vacancies came down from 4.6% to 3.2% in 2022, among the lowest of Melbourne’s iconic shopping strips. It will be further supported by ongoing developments such as Penny Lane that will bring apartments, retail, hospitality and a Palace Cinema to the strip, and the future $2 billion commercial and residential overhaul of the Moonee Valley Racecourse nearby.

“This was also a rare chance to invest in what is fast-becoming the lifestyle hub of Melbourne’s north-west with a proven track record for capital growth,” Niyaz said.

Puckle Street anchors the Moonee Ponds retail and lifestyle precinct that includes a Woolworths supermarket, Moonee Ponds Central, and a number of local and national eateries and service retailers.

Kombi said, “Despite the rising interest rates, we’re continuing to see a good depth of enquiry, strong results and tight yields in this part of the market,” Kombi said.

“Investors are keen to secure a steady cash flow from retail and commercial properties with quality tenants on long leases.”