Asset manager buys Bondi Beach shops with development plan
Initium Capital is seeking investors to buy neighbouring Bondi Beach shops covering c1800 square metres with significant medium-term development upside.
The deal for the five Hall Street properties, with individual investors, is worth a total $68 million.
The blended weighted average lease expiry is two years; with a combined 592 sqm, the buildings are occupied by Australia Post, Anglicare, Uturn, a backpacker’s hostel and hardware store.
After that, a four storey apartment complex above ground floor shops is planned.
The property sits in a pocket identified for denser development.
It also neighbours Aqualine, a five storey apartment complex, with a penthouse last September fetching $21.9m – $900,000 more than what developer Moshav Financial paid for the block making way for the project just before COVID.
Backed by the Huong Family Office, with Max Hayson representing the Hayson family, and Bo Zhuang, Initium – previously a family office, now working for investors – is promoting annual returns between 7.5-8pc.
“Council plans to turn Hall St into a pedestrian throughfare to create [a] major retail and commercial precinct,” the asset manager said in marketing material.
The area receives over 2.6 million visitors a year, it added.
Wiesner Property’s Jeremy Wiesner with Metro Capital’s Jerry Leis were the agents.
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