751-753 Burke Road Camberwell Sold demonstrating the ongoing attraction of well-located, income-producing assets, as well as the resilience of Melbourne’s shopping strips Fitzroys David Bourke and Chris James sold 751-753 Burke Road Camberwell on behalf of a family that has held the asset for 45 years.

Melbourne’s retail property market has passed its first test of 2021, with the $7.55 million auction sale of a generational prime investment on famous Burke Road, Camberwell demonstrating the ongoing attraction of well-located, income-producing assets, as well as the resilience of Melbourne’s shopping strips.

Fitzroys’ David Bourke and Chris James sold 751-753 Burke Road, Camberwell on behalf of a family that has held the asset for 45 years.

The property sold under the hammer in the first auction of a primely-located Melbourne retail strip asset for 2021.

The sale price reflected a sharp 4.1% yield. The purchaser is a private investor.

It comprises a dominant two-level 420sqm freehold with an expansive 12.2m frontage to Burke Road, on a 465sqm Commercial 1-zoned site over two titles offered as a whole. It is situated on a large site with frontage to Commerce Lane providing future value add potential.

“Well-located Melbourne retail and commercial property with strong tenancy profiles and long-term leases have become more highly-sought after during the COVID period, with investors preferring the secure income of bricks and mortar assets in the ultra-low interest rate environment.” Bourke said.

Mountfords Shoes, part of national retailer Munro Footwear Group, has been trading from the property for the entirety of the vendors’ ownership, and has a long 6+5-year lease returning $329,600 per annum plus GST, with annual 3% increases. Munro Footwear Group employs over 2,000 staff nationally and consists of leading brands that, as well as Mountfords, include Mollini, Diana Ferrari, Midas,Williams and Colorado.

“Well-located property in traditionally strong shopping precincts will always be sought after by astute investors, well aware of the limited buying opportunities in these proven pockets,” Bourke said.

“Investors and land bankers recognised the historic nature of this opportunity to acquire a dominant site in the heart of one of Melbourne’s most famous shopping and lifestyle strips.

 “This was reflected in the high volume of enquiry, fierce competition between multiple bidders at auction, and the strong result achieved.”

The campaign generated well over 100 enquiries from local and international parties.

“We expect more investors will be seeking these types of opportunities in 2021. The depth of enquiry shows there is a large volume of capital out there waiting to be deployed, with pent- up demand resulting from few high-quality, well-located properties offered for sale over the past 12 months,” Bourke said.

The property is centrally located on the main pedestrian crossing linking Burke Road and council car parks, within the highly regarded Camberwell Junction retail and lifestyle precinct, and in proximity to all major supermarkets, banks, and national and local traders.

James said the property is in a highly accessible position that enhances its connection to the expanded catchment that Burke Road and Camberwell Junction serve.

“Melburnians have been reconnecting with their local communities over the past 12 months. Neighbourhood strips have been the place to go for a coffee, catch-up with friends, or to break up the day and go shopping, particularly as working from home becomes more widely accepted,” James said.

“This has reinforced the resilience of Melbourne’s shopping strips and enhanced the investment prospects of well-located assets.”

An abundance of medium and high-density residential and commercial developments have been completed in recent times, including Camberwell Village, Hawthorn Park, Aerial, The Well Residences, Elmington, Solstice and Ebony. James said this has further enhanced the affluent and established inner-east residential catchment.

A transaction analysis is available for the sold property by emailing the selling agents Fitzroys David Bourke and Chris James via the contact form below: 

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