Investor snaps up Melbourne CBD Aldi for $11.525 million

An Aldi leased supermarket on the ground and first floor of a podium connecting the 36-storey Milano apartment tower and 46-level Verve complex, sold at auction last month for $11.525 million.

The 1650 square metre retail asset at 8 Franklin Street traded on a 4.7 per cent passing yield.

The investment includes 44 car parks which the marketing agents said could provide a future income stream.

Aldi is on a 10 year lease with options.

Local developer PDG constructed the Milano and Verve apartment buildings in 2006 on what was once part of Ansett Airlines’ office.

Car rental groups Avis, Budget and Hertz, Melcorp Real Estate, an Audi car showroom and indoor rock climbing centre occupy other spaces within the multi-level podium at the south west corner of Victoria Street and north west corner of Swanston Street.

The property is two blocks away from each of the Melbourne Central train station and Queen Victoria Market.

The Aldi asset was offloaded by private investors who paid $5 million for it in 2009.

Colliers International marketing agents Oliver Hay, Daniel Wolman and Chris Ling said the investment is in one of Australia’s most densely populated pockets near RMIT University and University of Melbourne.

A train station known in planning circles as CBD North, but to be called State Library, part of the $11 billion Melbourne Metro Tunnel project, is under construction across the road.

The asset includes 44 undercover car parks.
The Franklin Street property occupies the ground and first floor of a podium also facing Swanston and Victoria streets.

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Marc Pallisco

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

Marc Pallisco