Clarendon Street shop deals top $8.9m in six months

The South Melbourne asset at the north east corner of Clarendon and Wynyard streets sold for $1.7 million in March.

Another collection of shops in South Melbourne’s Clarendon Street has sold – bringing the tally of publicly reported deals since last November to $8.967 million.

In the latest transaction, Terraplex sold 344 Clarendon Street and 57 Emerald Hill Place for $1.7m – a 4.32 per cent yield.

Last November, the same vendor traded the neighbouring investment: 346 Clarendon Street and 59 Emerald Hill Place exchanged for $2.54m, reflecting a 4.64pc return.

Almost across the road, the Cloud Wine leased bottle shop at 317 Clarendon Street and a neighbouring parcel, 2 Wynyard Street (pictured above, right), sold in March for $1.79m.

This deal represents a 3.22pc yield.

Dixon Kestles director Simon Regan said the three assets were purchased by local investors.

Emerald Hill Terrace only getting more valuable

For the Terraplex fund, directed by former commercial sales agent Anthony Wilson, the sales are part of a subdivide and disposal program for a string of 15 retail and shop-top apartments it acquired – then on one title – for $27.5m in 2015.

There are about seven assets left of Emerald Hill Terrace to offload.

One of the shops it sold 18 months ago, 336 Clarendon Street, for which it banked $2.63m, was successfully auctioned earlier this month for $2.94m.

Clarendon Street office deals have quietly been sealed recently, too

In office circles, Hacer director and race horse owner Vince Sammartino paid $8m for the recently renovated 162-170 Clarendon Street following an off-market campaign.

A little further north, in the part of the street gazetted Southbank, CostaFox in February spent $28m on the historic former Robur Tea Building opposite Crown Casino’s western entrance and abutting Melbourne Convention and Exhibition Centre.

Now set to be renovated into a high-quality office – 28 Clarendon Street was in 2017 the subject of a planning application which could have seen a 39-floor hotel and apartment tower developed into the airspace.

CostaFox picked up this asset after an off-market promotion, too.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco