Zagame family sells Yarra Junction shopping centre for $18 million

The Zagame family has finally sold the Yarra Junction shopping centre in Melbourne’s outer east.

The asset is trading for $18 million to Melbourne private investors Ari Herszberg and Sam Herszberg.

It was listed last October with $20 million-plus price hopes.

On the Warburton Highway, about 66 kilometres from the CBD, the 3501 square metre complex was offloaded by the Zagame family, which picked it up in 2004.

Leased to 11 speciality stores and a Woolworths supermarket, and returning annual rent of $1.24 million, Yarra Junction is trading on an approximate 6.5 per cent passing yield.

The 3501 square metre complex occupies an 8230 sqm site zoned Commercial 1.

The complex occupies a 8230 sqm block zoned Commercial 1 and therefore appropriate for a mixed-use redevelopment containing residential in the longer term.

JLL’s Tom Noonan and Stuart Taylor brokered the deal, reported today by both the AFR and propertyobserver.com.au. The agents declined to comment when contacted.

Following the death of veteran investor Victor Zagame Senior in 2017, the family business is run by his sons, Victor Junior and Robert.

In March, it unveiled the Zagame House luxury hotel brand following the $18 million refurbishment of the former Downtowner in Lygon Street, Carlton.

The family is expected to expand the Zagame House marque in Queensland and New South Wales over coming years.

In February we reported that the group was paying the Australian Education Union Victorian division $21 million for the historic Austral Silk and Cotton Mills warehouse at 112-124 Trenerry Crescent, Abbotsford, in Melbourne’s inner north-east (pictured, below).

The red-brick Austral Silk and Cotton Mills warehouse, built in 1927, will be retained, after selling to the Zagame family following a campaign targeting developers.

Last October, the family offloaded a portfolio of pubs to New York-based investment bank Moelis for about $271 million.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco