Bill McNee banks premium from Stonnington shops

V-Leader recently launched a retail leasing campaign for the historic former South Yarra Coffee Palace.

Bill McNee has sold two Stonnington shops – acquired just 11 and 19 months ago – for major premiums following auctions this week.

The ex-South Yarra Coffee Palace, beneath a proposed office at 189 Toorak Road.

In the biggest deal, the Vicland founder banked $4.54 million for 264-266 Toorak Road, South Yarra, opposite the Como Centre and Palace cinema.

Occupied by Japanese restaurant Oushou, which recently renewed a lease by six years, the result demonstrates a low three per cent yield.

It also reflects a 37pc uplift on the $3.25m Mr McNee paid in late 2021 – 12 interest rate rises ago.

Oushou pays annual net rent of $145,000 for 264-266 Toorak Road.

Emmetts’ Charles Emmett and Xander Yeo were the agents; they said the 208 sqm restaurant, five holdings east of Chapel Street, is at South Yarra’s epicentre.

The Oushou restaurant (marked) is opposite the Como Centre.

Longer term, they added, the 225 sqm site at the south west corner of Foster St offers development upside, with buildings up to 21 metres, or about six storeys, able to be considered.

Elsewhere in South Yarra, Vicland is behind a mixed used retail based proposal at 162-164 Toorak Rd, opposite the train station.

The developer also sold an office built on an ex-Jam Factory car park, in Wilson St, to German fund manager Real IS for $73.5m in August, 2021.

In neighbouring Toorak, Mr McNee is close to completing a 10 level premium grade office, Central House, on the ex-Village Way site at 489-505 Toorak Rd.

Even better return at Windsor

Also this week, Mr McNee sold a recently vacated retail asset on 186 sqm at 12 Chapel St, Windsor, for $2.2m – a 67pc rise on the ($1.335m) price he paid 11 months ago.

Last occupied by Vietnamese restaurant Good Nights – it will be offered for lease again after also selling to an investor (story continues below).

Bill McNee banked a 67 per cent premium in 11 months for 12 Chapel Street – despite it becoming vacant.

The fully let net yield would circle 3.18pc according to Mr Emmett, who brokered this deal too.

“There is very strong demand for well located retail investment property,” he said.

“We are also seeing a significant increase in internationally originated private capital in the market and private investors who are taking a long term view on both cost of capital and rental growth,” he added.

Elsewhere in Windsor, SMA Projects director Martin Strode in 2021 won a four year battle to develop a nine level hotel on airspace over the train station’s tracks, and a neighbouring shop – or 24-26 and 28 Chapel St.

Pace Development Group is planning offices near there – at 70 Chapel St and 1A Windsor Place – a 743 sqm parcel it bought for $7.8m last year from the Kozminsky family, which held it for over a century.

In South Yarra meanwhile, Andy Zhang’s V-Leader last month launched a retail leasing campaign for the three level historic ex-South Yarra Coffee Palace at 189 Toorak Rd – set to be the centrepiece of a $90m project also with offices.

Mr Emmett and Mr Xeo have this listing too.

Major mixed use developments are also planned in that suburb at the Jam Factory – being delivered by Gurner, Quintessential and Newmark – and the South Yarra Square site on Toorak Rd, owned by Steven and Tony Sass’ Oreana Property Group.

Mazen Tabet is also refurbishing the Lyall Hotel, which he bought for $30.05m last year while at the Yarra River end of the suburb, GIC and Daniel Grollo’s Home recently won approval to develop a 22 storey Build to Rent investment replacing the ex-Ojay headquarters at 671 Chapel St it bought in 2021.

Subscribe to our newsletter at the bottom of this page.

Share or Recommend article

Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of