Nick Scali buys Melbourne showroom leased to rival
Nick Scali has quietly bought a two level building in the heart of a popular inner city Melbourne showroom precinct.
500 Church Street, Cremorne, cost the listed retailer $22 million – a 3.1 per cent yield.
Coco Republic is the occupier.
The building contains 1935 square metres.
The site spans 1055 sqm also exposed to Chapel and Hutchings streets.
Cushman & Wakefield’s George Davies and Oliver Hay brokered the off-market deal for a Gold Coast based investor which paid c$6m in 2009.
Nick Scali is an active property investor. In 2020 it paid $6.6m for an Adelaide showroom it now occupies.
Prime pocket
Coco Republic has occupied the Cremorne building since 2000 (continues below).
“Church Street is widely regarded as Australia’s premier strip for high-end showroom retailers, attracting a mix of national brands, design-led operators and global concepts,” Mr Davies said.
“Large-scale development activity is further reshaping the precinct, with LK Group progressing a commercial and retail project at 549–555 Church Street and Alfasi advancing a $600 million mixed-use scheme at 560 Church Street,” he added
“The 500 Church Street sale is understood to be a record for any landholding exceeding 1000 sqm along the strip,” according to the executive.
“The result reflected both the scarcity of scale and the persistence of buyer demand from retail occupiers.
“Church Street is one of the most tightly held show-room retail strips in Australia, particularly for assets of this size.
“We had been working with the buyer for more than 12 months to secure a meaningful foothold on the strip”.
The agency also last year sold 575 Church St, Cremorne, to Chemist Warehouse, for $4.725m.
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