A strategic development site in the eastern Melbourne suburb of Ringwood has sold for more than $11 million.
The under-utilised but tenanted investment covers a land area of 8067 square metres at 154-166 Maroondah Highway (pictured top, left and below), about 23 kilometres from the CBD.
Currently zoned Commercial 2, it is anticipated the land will be rezoned in future to Activity Centre – which would allow for mixed-use and high-rise redevelopment.
With more than 80 metres of frontage to Ringwood Lake Park, the holding is about 350 metres from Eastland Shopping Centre and the Ringwood train station. The Ringwood Town Square is about 450 metres away.
At present, 154-166 Maroondah Highway includes low-rise commercial buildings providing a lettable area of 5021 square metres. These are rented to a variety of tenants including Beaumont Tiles, Carpet Court, Nutrition Warehouse and Horseland.
The vendors, a local family, began acquiring the neighbouring properties from 1932. It is selling to another local family said to hold other Melbourne commercial investments.
Returning annual rent of $747,619, the asset is trading on a passing yield of about 6.8 per cent.
GormanKelly’s Aldo Galante and Nick Breheny with Jellis Craig’s William Lyall, the marketing agents, closed an expressions of interest campaign for this property on August 30. 2018. When it hit the market in July, it was expected to trade for about $10 million.