Outstanding Melbourne Shopping Strip Investment Set To Rise

A retail building prominently positioned in one of Melbourne’s most renowned and best-performing shopping strips is going to auction this month.

Fitzroys agents Ervin Niyaz and David Bourke are marketing 54 Puckle Street, Moonee Ponds, which will go under the hammer on Wednesday, 18 June at 11:30am on site.

A price in the high $1 millions is expected for the property.

The 2-level building, on 171sqm of land, is leased to one of Melbourne’s most highly regarded bakeries Ferguson Plarre, which has traded from the site for more than 50 years. The property is offered with a secure 7+7-year lease and a return of $88,691 per annum plus outgoings and GST.

The property is perched among a suite of strong-performing national retailers including Woolworths, Coles and Aldi supermarkets at Moonee Ponds Central, and Chemist Warehouse, Priceline, and Kmart, in addition to popular local retailers.

“This property is prominently positioned within one of Melbourne’s strongest performing and valuable retail and lifestyle precincts,” Niyaz said.

“Well-leased, well-located assets in Melbourne’s key shopping strips present an excellent investment opportunity while the residential and share markets experience a period of volatility.

“We’re expecting more interest from the market in assets in this fast-evolving suburb as it moves through the next phase of its generational development boom.”

Bourke noted there is some 2,000 apartments in the surrounds, to go with newly completed major residential developments such as Penny Lane, while the $2 billion overhaul of Moonee Valley Racecourse is underway and will ultimately add thousands more residents to the immediate catchment.

“This development surge has boosted the local catchment and supported business in the area. These further increases will serve to underpin trade prospects over the long-term.

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

Bourke said the property is further supported by a growing commercial market and workforce, which includes the Australian Taxation Office and Honda head office within walking distance from the property.

Niyaz said the property further benefits from Moonee Ponds’ excellent public transport linkages by train, tram and bus, and excellent connectivity to major road arterials, and location only 7km north-west of Melbourne’s CBD.

The property is highly accessible, close to Moonee Ponds train station, Moonee Ponds Junction bus interchange, and Route 59 and 82 trams.

“Moonee Ponds offers all the fundamentals of an well-connected inner suburban location with quality hospitality and lifestyle amenity,” Niyaz said. The development boom has been attracting a rush of investment, with 3 key sales across different sectors totalling $6.65 million secured in a matter of weeks by Fitzroys.

Niyaz and Fitzroys’ Chris Kombi negotiated the strong sales results on behalf of respective private owners.

Headlining the trio of deals was the $2.4 million sale on a tight 4.9% yield of a strata café investment at 23A Gladstone Street, which forms part of the Wesleyan Church redevelopment. The property includes a 300sqm building leased to the successful Quarter Two Café on a renewed, secure 5+5+5-year deal.

Also selling was a medical freehold at 84 Maribyrnong Road, with a long lease to a specialist periodontics and implant centre, for $1.78 million on a 4.7% yield, and 42-44 Hall Street, a partially vacant Activity Centre-zoned development site on a high land rate of over $7,000 per sqm.

Former Woolworths Supermarket Building Hits The Market

A former Woolworths supermarket building has hit the market, offering enormous potential for a range of retail operators to set up shop in a surging inner western location.

Fitzroys’ Ervin Niyaz and David Bourke are marketing the expansive, self-contained 1,871sqm building at 39 Borrack Square, which incorporates a rear loading dock, cool rooms, amenities and offices, with vacant possession on behalf of a private owner.

Expressions of Interest close Wednesday, 25 June at 3pm.

The campaign marks the first time in 25 years that the property has been offered for sale.

The building encompasses 3 street frontages.

“This is a rare opportunity for occupiers and investors to acquire a supermarket and large format retail asset in the heart of a tightly-held neighbourhood shopping precinct in Melbourne’s surging inner west,” Niyaz said.

He noted the property is centrally positioned within Borrack Square’s convenience precinct servicing the emerging and growing residential catchment, fronting a large public car
park and neighbouring national tenants including Commonwealth Bank, Chemist Warehouse, Australia Post, and TAB, and is adjacent to Millers Inn Hotel, Bayside P-12 College, Altona North Community Library, and Altona North Primary School, all driving continuous traffic through Borrack Square.

“Investors can re-lease the asset as-is or reposition the property and will likely see strong competition for tenancy given its busy and fast-growing location, with excellent prospects for future capital appreciation,” Niyaz said.

“We’re expecting interest from occupiers ranging from supermarkets, fitness centres and large format retailers. It’s an unmissable opportunity for occupiers to gain a presence in an highly accessible, high-activity area which offers a strong captive and fast-growing catchment.

“The location is highly accessible via major arterials and well supported by excellent customer car parking,” he added. The nearby soon-to-be-completed West Gate Tunnel project will improve travel to and from Melbourne’s west and create a much-needed alternative to the West Gate Bridge.

Bourke said the catchment is further boosted by the workforce at Altona North’s strong industrial sector, with the Mobil Refinery, Myer Distribution warehouse, Toll Transport and Toyota’s research and design facility, as well as various other private freight, manufacturing and logistics companies operating in the area.