Port Melbourne site abutting the West Gate Freeway sells for $7.285 million

The site is within Fishermans Bend’s WIrraway precinct.

A high profile Port Melbourne showroom/office, abutting the West Gate Freeway, has sold to an investor for $7.285 million.

The fully-leased asset at 115-119 Salmon Street earns annual rent of $449,925.

On that basis, the property is trading on a 6.2 per cent passing yield.

CVA Property Consultants Ian Angelico and John Nockles said the yield would drop to about 5.5 per cent after allowing for the land tax repayment.

The property at 115-119 Salmon Street, Port Melbourne, has longer term redevelopment potential, being within the Fishermans Bend Urban Renewal zone

The 2043 square metre plot, within the Fishermans Bend Urban Renewal Precinct, has a second street frontage to RockleaDrive.

It includes a modern and premium quality 1888 sqm building leased to Alliance Insurance Broking Service Pty Ltd, fitted out with an office, showroom, breakout space, gym and undercover car park for 17 vehicles.

Alliance’s lease agreement is for seven years. It then has the option to renew for five years.

“This sale result is representative of a call to auction from commercial property buyers looking to make their acquisition in an upward moving market driven by lower interest rates and the determination of the federal election,” Mr Angelico said.

The modern office has a contemporary staff room.

Bunnings, Harvey Norman, Anytime Fitness and Coles are amongst other occupiers in the area.

Close to the JL Murphy Reserve, 115-119 Salmon Street is about two kilometres away from both Pier 35 and Princes Pier.

It is also near the former General Motors Holden plant which the state government acquired for $130 million in 2016 with the intention of re-purposing into a high-tech employment hub.

Last month, we reported that Capital Alliance had appointed Crema Group to start construction of a 40-level Fishermans Bend building at 211 Normanby Street, South Melbourne. Part of this building will be tenanted to hotel AC Marriott.

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Marc Pallisco

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