Podco Clarendon Street Co-Investment Fund
Clarendon Street, South Melbourne
The Property is an entire South Melbourne block known as 328-362 Clarendon Street, 49 & 55-69 Emerald Hill Place and 244-246 Park Street, was acquired in August 2015 for $27.5 million.
The Property comprises:
- A row of 15 terraces in the middle of the Clarendon Street Shopping Precinct comprising 27 individual tenancies (15 retail shops, 2 office tenancies and 10 residential tenancies).
- An island site which is 100% leased to a diverse range of tenants including 15 retail, 2 office and 10 residential premises;
- Four (4) street frontages to Clarendon Street, Park Street, Emerald Hill Place and Bank Street; and
- Site area of approximately 2,761 square metres.
The property is occupied by an outstanding spread of tenants including Bendigo Bank, Gazman and Rokk Ebony. The property is also occupied by a number of cafes, restaurants and retail outlets – well recognised in the precinct with all enjoying excellent patronage.
The Manager identified compelling opportunity to invest in an entire South Melbourne block and retail strip in one of Melbourne’s most popular retail precincts with significant immediate and future upside by way of rental reversion and development/subdivision (STCA).
The investment strategy is to:
- Remixing the blend of tenants;
Seek rent reviews to higher market levels and lease extensions upon expiry of current leases;
- Seek planning approval to sub-divide the shops and residences into separate titles;
- Commence exit strategy to sell down separate shops, offices and residences once releasing is completed to retail investors where there is significant investor demand.