Billboard landmark with redevelopment permit up for grabs
One of Melbourne’s highest-profile properties – and unusual investments – has been listed for sale by the family of late VFL star Albert Mantello.
The Cremorne car park with two digital billboards – one beside the Nylex clock exposed to both directions of the Monash, near the Punt Road interchange – carries $14 million-plus hopes.
The combined annual income is $1.16m with fixed annual rent reviews.
The property also has development upside, permit-ready for an 11-level, 96-room hotel with a wraparound digital display – providing continued billboard income.
Big earner
The highest-profile component of 1-3 Harcourt Parade, Cremorne, is the larger billboard.
Measuring 18.95 metres by 5.3 metres to two sides, up to 470,000 vehicles pass it a day.
The smaller sign, exposed to southbound traffic on Punt Road at the busy Monash Fwy entrance, spans 9m x 3m.
Both are rented to Nine Entertainment’s Q-Media, trading as QMS Media, which commenced a 10-year lease in May with two five-year options.
In year one, the bigger billboard will earn $929,000 while the smaller will collect $150,000,
Meanwhile the car park with 17 bays, with the potential to increase that by one, is leased to Secure Parking for 11 years (continues below).
Annual net rent is $77,250.
Hotel with billboard income
The site is walking distance of Melbourne Park, AAMI Park and Richmond station.
“The income works now,” Aston Commercial’s Fred Nucara, who is marketing 1-3 Harcourt Pde with Jeremy Gruzewski, said.
“The signage and car park income stands on its own — a buyer doesn’t need to build anything to get a return,” according to the executive.
“The sign also doesn’t go away…the hotel design was built around the signage, not in spite of it – the digital sign is incorporated into the building facade, meaning the same income stream that funds the asset today can keep funding it inside a redeveloped, higher-value building tomorrow,” he added.
Mr Gruzewski said the hotel approval gave the purchaser flexibility around when, or whether, to develop.
“The hotel is optional, not obligatory,” according to the executive.
“When construction economics and Melbourne accommodation demand line up, the permit is sitting there ready,” he added.
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