High-profile Melbourne warehouses sold in one line
A high-profile retail-warehouse investment beside the enormous Frederick Romberg-designed ETA factory, in Melbourne’s inner-west, has sold to one buyer after being offered individually.
The six properties at the corner of Ballarat Road and Lacy Street, Braybrook, traded for $8 million, a building rate of $4520 per square metre. The land rate is $1976.
The seller was a private investor.
It was represented by CVA’s Leo Mancino and Domenic Sgambellone.
The buyer is a consortium.
The market yield is 5.5 per cent.
The former 1957 Nut Foods Factory (later known as the ETA factory) is a heritage-protected industrial building later occupied by Binks Ford, now a large-format retail and showroom precinct.
Royal flush asset: agent
On one title – 1648 sqm zoned Commercial 2 – the properties go by the addresses of 252 and 252A Ballarat Rd and 1-4/4 Lacy St.
The Lacy St tenancies span 420 sqm on near 500 sqm sites.
The Ballarat Rd blocks are bigger – 822 and 826 sqm – with a combined 40 metres frontage to the busy street, but with sub 100 sqm of improvements (continues below).
Occupiers include Fruit Salad Co, a karaoke lunch and mechanic.
The potential fully let annual income is c$440,000.
“Diverse assets with brilliant exposure to Ballarat Rd are rare,” Mr Mancino said.
“When the key points to this package are the existing leases plus the redevelopment potential of 252 and 252A Ballarat Rd to attract QSR [quick service restaurant] tenants and/or showroom warehouses, more is lost in indecision than wrong decision,” he added.
“This decision proved right,” according to the executive.
“Six titles, one corner – secure a single asset or the complete ready-made portfolio”.
“With such a diverse asset, with development upside, this commercial portfolio is like holding a permanent royal flush,” Mr Sgambellone added.
Braybrook is nine kilometres from the CBD.
Subscribe to our newsletter at the bottom of this page.
