Bank once owned by Murdoch family resells for premium
A double fronted bank held for 23 years until mid-2019 by late philanthropist Anne Kantor, the daughter of Sir Keith and Elisabeth Murdoch and sibling of Rupert, in the heart of Brighton’s Church Street retail strip, has sold again.
The 288 sqm shop at #35 collected $7.15 million at auction from a local investor.
Expectations were circa $6.7m-plus.
The vendor, an offshore investor, paid the Kantor family $6.105m in August, 2019.
Ms Kantor died last September, aged 86.
35 Church Street
The result for 35 Church St reflects a 3.5 per cent net passing yield and building and land rate of $24,826 per sqm.
NAB has occupied for over 30 years.
With options, it can stay about 15 years.
“The property is on a substantial site of 288 sqm with a large 8.5 metre frontage to the prime part of the strip,” Fitzroys’ Mark Talbot, who marketed the property with Tom Fisher, said.
“This was undoubtedly one of the best Melbourne shopping strip investment opportunities we’ll see for 2023 and the result reflected that,” he added (story continues below).
“The market recognised how rare it is to find good sized property with a renewed, secure lease to a major bank,” according to the executive.
“The purchaser was attracted to the excellent tenant, the tenant’s payment of land tax and the strong rental growth achieved from the asset.
“There had been a 19pc uplift in rental since the property was last sold four years ago, despite COVID resetting the world economy in this time.
“The benefit of land tax being recoverable from the tenant was a huge attraction to investors and, together with the secure lease term to an ASX-listed big four bank made this investment close to risk-free.
“We’re still seeing investors put their faith in income-producing bricks-and-mortar assets.
“Higher interest rates clearly haven’t deterred investors from pursuing high quality opportunities”.
Other high profile occupiers in the street include Bed, Bath N’ Table, Country Road, Husk, Mecca, Saba, Seed Heritage, Sportscraft and the Dendy Cinema.
Scanlan Theodore – whose director Gary Theodore, we reported, last month purchased a former South Yarra school to repurpose as the company headquarters – also has a presence.
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