Melbourne’s prime retail strip investment market is set for its next major test early next month, when a commanding freehold with an A-grade tenancy profile in the heart Burke Road, Camberwell goes under the hammer.

Fitzroys’ Chris James, David Bourke and Ben Liu are marketing 570-572 Burke Road, Camberwell on behalf of a local investor. The auction is set for Friday, 4 December at 12pm on site.

Expectations are of a circa 5.5% return, or around $4.5 million or more.

Comprising a flexible 2-level 403sqm building with the potential of single or multiple tenancies, the property is on a dual-fronted site encompassing 234sqm of land with Activity Centre zoning.

It is offered with dual income streams, with a long-term lease including options to multinational optical business Specsavers, which has been at the site for coming up to 15 years, and a brand-new 10-year lease to popular Woodfrog Bakery following on from a decade in the strip.

“This is a prime flagship investment in sought-after Burke Road, Camberwell, positioned amongst the strip’s retail heavyweights in Witchery and Country Road, and offered with income streams from two A-grade tenants and invaluable dual frontages to Burke Road and the Camberwell Fresh Food Market,” James said.

“It’s a really fantastic vote of confidence in the strip that Woodfrog has just renewed for 10 years. This committed tenant trades exceptionally well fronting into the popular Camberwell Fresh Food Market, and Specsavers enjoys prime frontage to one of Melbourne’s most established shopping strips.”

Woodfrog Bakery operates from 27 locations across Melbourne, while Specsavers operates in Australia, New Zealand, Canada, the United Kingdom and in Europe.

Liu said, “We’ve had interest coming from local, interstate and international buyers given the high-profile nature of the offering, the great reputation of Burke Road, and the incredibly rare opportunity to acquire a freehold with a high-quality tenancy covenant in such a valuable part of blue-chip Camberwell.”

The Burke Road and Camberwell Junction precinct continually records strong vacancy figures in Fitzroys’ Walk the Strip report series.

Bourke noted that the precinct has been gazetted by the Victorian Government as an Activity Centre, earmarked for high-intensity development that will deliver thousands of new residents to the immediate catchment over the long-term. Boroondara Council has also previously outlined its vision for further high-intensity development in Camberwell Junction.

“Further considered development in the immediate surrounds will assist in boosting trade and activity,” he said.

“Burke Road already services one of Melbourne’s most established and affluent catchments, while the inner-east’s growing office market has further added shoppers and diners - and is attracting more residents to the area, supporting local businesses, services and amenity,” Bourke added.

Camberwell Junction offers ample car parking, and excellent public transport connections via Camberwell Train Station and the Route 70, 72 and 75 trams, making it easily accessible to and from the CBD and surrounding suburbs.