Chemist Warehouse executives buy prominent Melbourne corner
Chemist Warehouse directors have swooped on what is arguably suburban Melbourne’s most prominent commercial corner – at this stage to keep as an investment.
The two storey bank at 600 Chapel Street on the south east corner of Toorak Road is believed to be trading for $15 million.
Part of the deal will see the National Australia Bank, which has occupied since 1951 and still rents 73 per cent, commit for at least another seven years.
The balance of the 521 sqm building is leased to other parties.
The result reflects a low 2.97pc per cent yield.
It also prices the lettable area at $28,248 per sqm; NAB spent c$1.5m refurbishing its tenancy in 2022.
The 373 sqm Commercial 1 zoned site is at what agents describe as one of the busiest for pedestrian traffic outside of Melbourne’s inner city, also commanding amongst the highest relative retail rents.
Longer term, the property could be considered for the pharmacy business to occupy – possibly on the ground floor of a high-rise development.
Seller, Vicland director Bill McNee, was represented by Cushman & Wakefield’s Daniel Wolman, Oliver Hay and Leon Ma with Emmetts’ Charles Emmett and Xander Yeo (story continues below).
Executives buy again
Chemist Warehouse is presently the subject of a float.
The South Yarra property is the latest in ‘High St’ type retail asset acquired by directors, including Jack Gance and Mario Verrocchi, in various syndicate formats, over the past 24 months.
Some – like 600 Chapel St – are investments.
Others, like in Bridge Rd, Richmond, are expected to be occupied by the business (as in that street, the pharmacy’s current rented site across the road is the subject of a planning application).
Executives might also move the business at Kew to another nearby better connected to a car park.
Elsewhere in Melbourne, the businessmen have also bought in, amongst other suburbs, Brighton, Forest Hill, Hawthorn and Ivanhoe. In 2022 some picked up a Grafton, New South Wales, property, next door to one they occupy but arguably potentially busier, opposite a crossing.
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