Quality Puckle Street Investment Sells On Tight Yield

Posted on 10th July 2024

An impressive two storey shop and dwelling in Puckle Street, Moonee Ponds has been sold to a local investor for $2.63 million.

Fitzroys’ Ervin Niyaz and Chris Kombi negotiated the sale of 116 Puckle Street, which sold on a tight yield of 3.13% on the net passing rental.

The property is leased to ASX-listed tenant ResMed.

Kombi said the deal demonstrated the desirability of Moonee Ponds as an investment destination, which had driven strong sales results.

According to Fitzroys’ Walk the Strip report series, Puckle Street has consistently recorded amongst Melbourne’s lowest vacancy rates, sitting at just 3.9% in 2023.

“We’ve seen more people embrace flexible working arrangements in the post-pandemic environment, with people looking to work closer to home in highly-accessible locations with quality hospitality and lifestyle amenity. This has underpinned trade along Melbourne’s shopping strips,” Kombi said.

The 116 Puckle Street transaction is the latest Moonee Ponds investment play in a string of deals managed by Fitzroys. Niyaz and David Bourke recently sold Levels 1 & 2, 5 Everage Street, in conjunction with Patrick O’Callaghan of O&Co, for $3.2 million three weeks ahead of the Expressions of Interest campaign close, well above expectations after Fitzroys was able to source a knockout unconditional offer that the vendor accepted prior to the campaign close.

The commercial office encompassing 842sqm was offered with a secure lease to co-working and flexible office space provider One Plus One Business Centre.

Niyaz said the property is in a highly sought-after location in the epicentre of the Moonee Ponds booming activity centre, surrounded by apartment towers, major redevelopment, and all the lifestyle, retail and hospitality that Puckle and Hall streets have to offer, as well as Moonee Ponds Central, anchored by Coles, Kmart and Aldi.

“Moonee Ponds is witnessing a generational boom. It’s seen delivery of the Mason Square precinct and more recently Penny Lane, which has brought apartments, retail and a new Hoyts cinema to the location, while the future $2 billion residential and lifestyle overhaul of the Moonee Valley Racecourse nearby has kicked off and will introduce 2,000 new dwellings as well as commercial space to the area.”

“More and more people are wanting to live, work and play in Moonee Ponds.

“Moonee Ponds ticks all the boxes. It offers excellent public transport linkages by train, tram and bus, and excellent connectivity to major road arterials and only seven kilometres north-west of Melbourne’s CBD.”

Niyaz has also recently sold the vacant building at 46 Pascoe Vale Road, moments from Moonee Ponds Junction for $1.2 million, in which another investor also put forward a strong bid, well above expectations, which was accepted by the vendor ahead of auction.

The building has been used as the offices of an architecture firm and attracted owner-occupiers and investors, with the purchaser very confident in securing a quality tenant for the asset, Niyaz said.