One of the most high-profile properties in Melbourne’s inner east has sold on a tight yield.
Home to popular steakhouse The Meat & Wine Co, the strata-titled property at 482 Riversdale Road - at the corner of Burke and Camberwell Roads - sold for $4.11 million, on a 5.8% yield.
The sale was brokered through Fitzroys’ Asian Services team of Chris James and Ben Liu following a successful auction campaign, with the transaction marking the buyer’s first commercial property acquisition in Australia.
The trophy property overlooks the busy Camberwell Junction intersection of Burke Road, Camberwell Road and Riversdale Road, between the Camberwell and Hawthorn East retail, lifestyle and commercial precincts.
“It’s on a high profile corner, and this is a true landmark asset,” James said.
“The yield is pretty strong in this market, particularly for a strata-titled asset - anything under 6% is notable.
“Our campaign generated a buyer profile mix of local and offshore parties, who were keen to invest in a well-located asset with a quality tenant. The Meat & Wine Co is really well-regarded.”
The Meat & Wine Co has grown to a national steak restaurant offering - as well as a restaurant in London’s Mayfair - with the Camberwell location a high-peforming flagship restaurant in its portfolio.
Seagrass Boutique, the hospitality group behind The Meat & Wine Co, was late last year acquired by Japanese dining giant Colowide in a deal worth around $122 million.
“The Colowide acquisition of Seagrass Boutique was a huge show of faith in the group’s operations as well as its prospects, and gave great confidence to the buyer of the quality of the tenancy covenant,” James said.
The steakhouse has a five-year option with four further options of five years each.
Liu said buyers were also attracted to the growth prospects of the area, which already services one of Melbourne’s most established catchments.
“Camberwell Junction is undergoing major planning reform with significant density and large-scale projects currently underway.
“Camberwell Junction is one of the Victorian Government’s designated Activity Centres, earmarked for high-density residential developments of six to 12 storeys, with high and medium-density development in the surrounds, which are expected to bring thousands of new residents in total to the area, boosting trade and activity.