54 Puckle Street, Moonee Ponds
Pre-auction expectations have been exceeded for a retail building prominently positioned in one of Melbourne’s most renowned shopping strips, and interest in the strip is expected to build in line with a generational development boom taking place in the surrounds.
Fitzroys agents Ervin Niyaz and David Bourke sold 54 Puckle Street, Moonee Ponds for $2.010 million, on a 4.41% yield.
The two-level building, on 171sqm of land, is leased to one of Melbourne’s most highly regarded bakeries in Ferguson Plarre, which has traded from the site for more than 50 years. It was offered secure 7+7-year lease.
Niyaz said investors the campaign generated competition among investors who recognised the property’s prominent position within one of Melbourne’s strongest performing and most valuable retail and lifestyle precincts.
“Fitzroys generated more than $17 million worth of shopping strip assets leading into the new financial year, and we’re seeing investors and owner-occupiers alike pursuing properties.
“Investors are particularly keen on well-leased properties and we’re seeing yields begin to tighten. That’s also been encouraged along by the gradual reduction in interest rates and improving sentiment now that the federal election is behind us.”
Bourke said Melburnians are looking for places where they can live, work and play and shopping strips with strong commercial and residential markets, and high accessibility via public transport and car are attracting broad interest.
He noted that 54 Puckle Street is surrounded by the generational Moonee Ponds development boom.
“There are some 2,000 apartments in the surrounds, to go with newly completed major residential developments such as Penny Lane, while the $2 billion overhaul of Moonee Valley Racecourse is underway and will ultimately add thousands more residents to the immediate catchment,” Bourke said.
“This development surge has boosted the local catchment and supported business in the area. These further increases will serve to underpin trade prospects over the long-term.”
Moonee Ponds is further supported by a growing commercial market and workforce, which includes the Australian Taxation Office and Honda head office within walking distance from the property, while the suburb boasts excellent public transport linkages by train, tram and bus, and excellent connectivity to major road arterials, and is located just seven kilometres north-west of Melbourne’s CBD.
The property is perched among a suite of strong-performing national retailers including a Woolworths supermarket, Coles and Aldi supermarkets at Moonee Ponds Central, and Chemist Warehouse, Priceline, and Kmart, in addition to popular local retailers.
“More and more people are wanting to live, work and play in Moonee Ponds. We expect more interest from the market in assets in this fast-evolving suburb as it moves through the next phase of its generational development boom,” Bourke said.
Fitzroys has now sold more than $12 million worth of Moonee Ponds assets recently, with the 54 Puckle Street sale following four deals in the suburb across different asset types.
Headlining the deals was the $2.4 million sale on a tight 4.9% yield of a strata café investment at 23A Gladstone Street, which forms part of the Wesleyan Church redevelopment. The property includes a 300sqm building leased to the successful Quarter Two Café on a renewed, secure 5+5+5-year deal.
Also selling was a medical freehold at 84 Maribyrnong Road, with a long lease to a specialist periodontics and implant centre, for $1.78 million on a 4.7% yield, and 42-44 Hall Street, a partially vacant Activity Centre-zoned development site on a high land rate of over $7,000 per sqm, as well as an apartment complex at 21 Hinkins Street for $3.35 million.
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