ASX-listed Charter Hall has paid $12.5 million for the Coburg Drive-in cinema complex in Melbourne’s inner north.
The 8.1 hectare site at 155 Newlands Road, Coburg North, was offered by Village Roadshow with a 10-year leaseback.
Based on the starting annual rent of Village’s rental agreement, Charter Hall is acquiring the property on a 4.8 per cent yield.
The site is strategic, being a likely candidate for a housing estate, if Village moves out. The cinema’s lease includes option (renewal) periods.
Operated as a drive-in cinema since November, 1965, the complex is said to be the biggest centre of its type in the southern hemisphere.
“The transaction further reinforces the current demand for long term passive cash flows, especially those with a high underlying land value and future redevelopment potential,” transaction manager Charter Keck Cramer said in this statement.
CKC’s national executive director Clint Jellis and associate director Jessica Crossland acted for Village.
CKC appointed JLL’s Tony Iuliano and Adrian Rowse to manage an expressions of interest campaign for Village’s Coburg North plot.