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 complex occupies a 8230 sqm block zoned Commercial 1 and therefore appropriate for a mixed-use redevelopment containing residential in the longer term.
Following the death of veteran investor Victor Zagame Senior in 2017, the family business is run by his sons, Victor Junior and Robert.
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).
Last October, the family offloaded a portfolio of pubs to New York-based investment bank Moelis for about $271 million.