Chemist Warehouse owners buy into ritzy Melbourne strip
Executives behind Chemist Warehouse have paid nearly $10 million for a row of three shops with significant development upside in Melbourne’s ritzy Church Street, Brighton, strip.
The deal for #23-27 reflects a 3.6 per cent net passing yield; the single storey asset sits on a 552 square metre Commercial 1 zoned plot with side and rear laneway access.
Waterfront Brighton and Eco D are the occupiers.
Lettable area is 400 sqm with 16.8 metres of frontage to the strip, diagonally adjacent to Coles and Palace Cinemas.
More than 80 offers came in, according to Gross Waddell ICR’s Alex Ham and Michael Gross, who closed an expressions of interest campaign in November.
The buyers, a consortium including Mario Verrocchi and Jack Gance, are expected to hold it as an investment.
Executives have also in recent years acquired assets at Fitzroy, in both Brunswick and Smith streets, and Glen Waverley with long leases (story continues below).
However, the parties have been buying product for the Chemist Warehouse business to occupy now and in the medium term, including a former National Australia Bank in Richmond and row of shops backing onto a car park in High St, Kew.
It is also speculated the group will seek to move into a Cotton On, in New South Wales’ Grafton, next door to a tenancy it rents – which business owners bought last February for $4.1m.
Last September the executives bought a Glenferrie Rd, Hawthorn, outlet, occupied by a rival, Terry White – outlaying $10.93m.
National Retail Group’s Michael Spektor represented the Chemist Warehouse owners and manages the retailer’s portfolio.
Elsewhere in Brighton the group controls an ex-Video Ezy on nearly 900 sqm at 363 Bay St which traded for $9.6m in 2022.
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