Portmans founders sell two suburban Melbourne assets for $22m

The Bloom family – who are behind numerous retail brands including fashion label, Portmans, established in the 1940s – has sold two Melbourne commercial assets for a total of $21.96 million.

In the biggest deal, formalised today, a small shopping centre in the inner-eastern suburb of Richmond (pictured top and left) sold at auction for $14.11 million – or $3.11 million over reserve.

Fifteen registered bidders contested for 143-151 Bridge Road, on the north-east corner of Lennox Street, following a campaign targeting investors who might consider redeveloping in the medium term.

Long-time Richmond shoppers may remember the Portmans chain for years occupied space in this double-storey 1134 square metre building on a 720 square metre block.

Now a fully leased office and retail complex leased to four high profile tenants, including ANZ, Sony Music Entertainment and Suncorp, and returning annual rent of $533,000, the investment is changing hands on a yield of 3.8 per cent.

In the immediate area, developers have won approval to construct buildings of about ten levels. The asset was marketed as “Richmond Hill’s holy grail” and “an inner city icon” by CBRE’s Josh Rutman, Rorey James and Mark Wizel.

This Richmond sale comes two weeks after the family sold another corner site, in the ritzy south-east suburb of Malvern, for $7.85 million – a result some $1.35 million more than the guide price.

At 131-133 Glenferrie Road, on the south west corner of Llanest Street, a 430 square metre holding abuts a council car park and is configured with a double storey building, containing 860 square metres of lettable area split into six spaces, offices and shops.

The asset, generating an annual rental return of $271,530, paid by high profile tenants including Flight Centre and Optus, was auctioned by Allard & Shelton’s James Gregson, Michael Ryan and Joseph Walton.

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Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au