$12m Oakleigh Sale
An offshore developer is paying about $12 million for a large property in Melbourne’s south-eastern suburbs that can’t be redeveloped for at least 15 years.
The Oakleigh dealership of South Yarra BMW – a business operated by the Bayford Group – is exchanging on a yield of about 5 per cent.
The 4643-square-metre block at 190-192 Atherton Road, at the intersection of the Princes Highway and Huntingdale Road, has been earmarked for a rezoning to mixed use, which would allow a range of multistorey redevelopments including a shopping centre, apartment complex or both.
However, Bayford Group has two 10-year options to renew occupancy at the high profile site after 2029.
Last month developer ICD paid $15.6 million for a 9057-square-metre property in nearby Highett, which is leased to a gym until at least 2025. ICD said the purchase was to satisfy a requirement to have a long-term pipeline of potential Melbourne development sites.
Sutherland Farrelly’s Grant Samuel and Paul Sutherland marketed the Oakleigh site. Sven Burchartz and Lisa Fowler of Kalus Kenny Intelex Lawyers also acted for the vendor, while the purchaser was represented by ICR Property Group’s Raff De Luise and Peter Bazzani of law firm Bazzani Scully Priddle.
THE AGE, Commercial Real Estate Section, 23rd May 2015