Chemist Warehouse owners win one, lose one in Melbourne

The Chemist Warehouse, near 129-135 High Street (both marked).

A consortium of Chemist Warehouse owners has snapped up another prime strip retail property – this time at Kew Junction.

At auction on Friday, the executives outlaid $5.325 million for adjoining stores covering 630 square metres at 129-135 High Street, with rear access to a council car park.

The High Street property is trading on a 3.67 per cent yield.

All up there is 577 sqm across five tenancies including a Bakers Delight, the Sierra Art Gallery and an upstairs apartment.

It earns $195,682 net annual rent.

Chemist Warehouse is speculated will move in longer term; it has had a presence in the street – at #121 – for over 10 years. In 2017, it expanded, taking over a lingerie store at #123.

Teska Carson’s Stephen Speck marketed 129-135 High St.

The ex-National Australia Bank on Bridge Road sold last year.

Occupier least likely buyer

The agent marketed 129-135 High St’s diversified income stream.

He also promoted its longer-term potential to be repositioned or redeveloped.

The acquisition comes 14 months since Chemist Warehouse’s owners, which include the Gance and Verrocchi families, outlaid $8.3m for an ex-National Australia Bank at 335-341 Bridge Road, beside Richmond Town Hall.

With 685 sqm and on 704 sqm also with development upside, it is opposite the suburb’s existing Chemist Warehouse outlet.

The executives control Fitzroy’s triple storey Kindness House, at 276-294 Brunswick St, too, after outlaying c$12m in 2020 (story continues below).

Opposite Flagstaff Gardens, the William Street strata contains 390 square metres.

Again, that property is near one of its pharmacists (206-210 Brunswick St).

It also has significant redevelopment potential, with 3135 sqm of unrenovated area or as a new-build. The 1045 sqm site, like 335-341 Bridge Rd, is zoned Commercial 1.

New William Street landlord

Meanwhile a Chemist Warehouse at the high profile north east corner of La Trobe and William streets, opposite Flagstaff Gardens, also sold at auction last Friday – to a private investor in the medical field.

Spreading 390 sqm, part of a mid-rise office complex, the pharmacy owners were not expected to contest.

However, six bidders did, pushing the price to $3.62m, reflecting a 5.3pc net passing yield.

Stonebridge Property Group’s Max Warren, who marketed the strata, Ground, 326 William St, with Chao Zhang and Colliers’ Anthony Kirwan and George Davies, said there is rental upside following a market review in 2026.

“This ultimately resonated with the buyer who with a long-term view…was prepared to bid aggressively,” he added.

“The process was highly engaged by both local investors and buyers sourced through our Stonebridge Asia Practice team – of which there were two underbidders,” according to the executive.

The seller was businessman, developer and musician Albert Dadon. Settlement is in 90 days.

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Marc Pallisco

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