Epping commercial sites fetch c$50m

Also today, we are reporting Sector has paid c$24.5 million for an Altona site.

Three major commercial properties across the road from each other in Epping, considered the CBD of Melbourne’s north, have sold for a total of nearly $50 million.

In the biggest deal, Sector Property Group is outlaying a speculated price of over $25m for a 5.92 hectare block at 73 Miller Street.

The Cooper Street car dealership and showroom.

Zoned Activity Centre, the site is expected to make way for an industrial park.

Leedwell Property’s Renee Ferraro and Steve Smith’s represented the vendor, property investor Hoang Vu Nguyen, who acquired the land from Elpis Constructions in mid-2019.

“While the campaign was off-market, there were several groups competing fiercely,” Ms Ferraro said.

Sector managing director David Loakes added the company is expected to bring its plans to the market in the first quarter of the new year.

Hostplus director divests

Meanwhile, diagonally adjacent to the Sector site, former Hostplus board member Mark Robertson is banking c$24 million for a car dealership and showroom investment (pictured, top).

The larger property, 100 Cooper St, leased to Jowett Motor Group and trading as Northern Honda, spreads across 9268 square metres and is believed to be trading for $16m.

Neighbouring this, 88 Cooper St, occupied by Burson Auto Parts, NAPA Auto Parts and MKS Spices n’ Things, covers 4228 sqm.

The amalgamation also fronts Duffy and Wedge streets.

Records show the buyer is East Ivanhoe based property investor Dean Laidlaw, who is paying a price reflecting a c4.54 per cent yield.

Mark Robertson is the son-in-law of retired real estate agent Alexander Robertson.

Since stepping down from the Hostplus board, the executive has focused on his hospitality business Hotel & Leisure Management which owns the city’s Mail Exchange and Welcome Stranger (story continues below).

The businessman also part-controls the Epping Plaza Hotel, within QIC’s Pacific Epping – across the road from the assets he has just sold.

Development upside

Buildings up to 25 metres tall could longer-term replace the Laidlaw blocks.

“The 1.35ha site has a 470 metre street frontage and is directly opposite the Pacific Epping regional shopping centre and in the heart of Epping Central, the priority investment area within the City of Whittlesea,” Fitzroys marketing agent Chris James, who marketed the asset with Paul Burns said.

“We had a huge response from buyers with multiple bids made before the campaign’s scheduled close,” he added.

“The buyer signed an unconditional contract five days before the close of an expressions of interest [campaign],” according to the executive.

“Epping is undergoing a generational boom and…Cooper St [is] becoming the region’s major commercial hub.

“The property presented as the ultimate land bank – an outstanding, secure investment opportunity in the here and now while presenting huge longer-term potential, with council encouraging high density commercial and residential development by way of the site’s Activity Centre zoning”.

Jowett Motor Group recently signed a 10 year lease for its 3860 sqm dealership, service centre and spare parts warehouse, paying starting annual net rent of $730,000.

Eighty eight Cooper St, by comparison, returns $360,000.

With 1721 sqm of improvements, its Weighted Average Lease Expiry is 4.5 years.

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Marc Pallisco

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