The historic auction of a Tunstall Square shopping centre retail asset has netted $2.075 million for the vendors of more than 60 years.
Entrusted with the campaign, Fitzroys’ Chris Kombi and Jordan Ceppi sold 13 Tunstall Square under the hammer at a tight 4.11% yield.
Kombi said the auction competition between five parties, with more than 70 bids, and pushing the sale price well past the reserve and to a remarkable building rate of $16,000 per sqm.
The 130sqm single-storey bricking building is on a 213sqm site that provides future value-add potential, and has a frontage to Tunstall Square of six metres with excellent rear access via ROW.
It is leased to long-standing and renowned tenant Mauro Bros Butchers, which has traded from the property since 1969 and currently has a five-year lease.
“Prospective purchasers recognised the generational opportunity to acquire this opportunity in the prime trading section of a blue-chip precinct that draws shoppers from a wide and growing catchment across the eastern suburbs.
“The strong enquiry and massive result reflected the historical significance of the vendors’ decision to sell in a market that has seen pent-up demand for a high-quality retail properties in well-performing locations across Melbourne.”
Mauro Bros is a family-owned wholesale butcher that has been operating since 1969, and has grown to multiple retail outlets in Melbourne and a wholesale butcher division.
Ceppi said the versatile space attracted enquiry from a range of investors and potential owner occupiers looking secure a high-exposure space within a convenience-based shopping centre, which have typically proven to be more resilient throughout retail headwinds.
“The flourishing Tunstall Square shopping centre has proven to one of Melbourne’s best performing and most tightly held retail precincts, and boasts record low vacancy rates owing to the demand from the local residential catchment, visitors and the mixture of complimentary retail uses.”
Tunstall Square offers a wide range of quality retail and hospitality options, including Coles, Chemist Warehouse, Vintage Cellars, La Porchetta, AusPost, TAB, Flight Centre and more.
The shopping centre’s appeal is enhanced by its ample public car parking, proximity to a number of major arterial roads including the Doncaster Road, Blackburn Road and the Eastern Freeway. Eastern Freeway, and multiple bus routes.
Recently-completed and under construction medium and high-density residential developments have further supported the local catchment.