The Dimattina family – which founded a coffee company bearing its name – has banked $6.9 million from the sale of an asset in a ritzy Brighton retail strip.
The historic double story building at 92-94 Church Street is tenanted to Westpac.
Returning annual rent of $264,992, it is trading on a low 3.8 per cent yield.
The 322 square metre building occupies a 280 sqm plot which marketing agency CBRE promoted for its ability to be redeveloped.
A mixed-use complex containing ground floor retail and upper level offices, or apartments, was a possibility, the agency said.
Westpac has no lease renewal options beyond 2022. That said, it renovated the branch last year.
Sandro Peluso, Rorey James, Jing Jun Hung, with Iles Matthew Iles and Richard Seeley represented the vendors, which founded the Dimattina coffee chain in 1954. The family had owned 92-94 Church Street, Brighton, for nearly 20 years.
Mr Peluso promoted the strip’s low retail vacancy rate – just one shop is available to lease at present.
“Church Street, Brighton, is regarded as one of Victoria’s premiere retail strips, with vacancy rates frequently dipping below 1 per cent and rents reaching in excess of $1000 per sqm,” Mr Peluso said upon listing the asset two months ago. “Several of Australia’s most well-known brands lease space in the precinct including Sportsgirl and MIM.CO”.
The sale comes five months after an investor acquired the Sportsgirl-leased building, at 89-91 Church Street, for $8.2 million – more than $3 million over its reserve, and reflecting a low yield of 2 per cent. Sportsgirl has occupied this site for 25 years.