LYZ Property Group is flipping a large corner block in Hawthorn – one of Melbourne’s blue ribbon suburbs.
The 2593 square metre site, containing a 4427 square metre low-rise showroom with leases in place to Captain Snooze, Sofas Direct and National Storage, is expected to trade for more than $20 million.
LYZ – a subsidiary of the Hengmao Group based in China – paid $17 million for the asset in early 2016 – arguably the time a suburban development site boom was beginning to gain pace in Melbourne.
The Commercial 1 zoning of 283-285 Burwood Road would allow for the construction of a substantially taller building.
Alternatively, the Hawthorn asset returns net rent of just over $786,000, making it an attractive prospect to investors, too. The Glenferrie train station is about 450 metres away – along the popular Glenferrie Road retail strip. The CBD is about five kilometres away.
In 2013, a similarly large former furniture showroom at 511 Church Street, Richmond, in Melbourne’s inner-east, made way for a five-level office now occupied by REA Group.
LYZ made headlines earlier this year selling the Computershare headquarters in Abbotsford for $93.5 million after paying $88.9 million for it in 2016. Since 2010, LYZ has also acquired property in Daly Street, South Yarra and in St Kilda Road – with the purchase of the historic Airlie Mansion, the former home of late prime minister Stanley Bruce.