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An iconic commercial site in West Melbourne has been sold, snatched up by a developer that is a budding buyer in the sector’s purchasing scene.
Witches in Britches, an asset located at 78-86 Dudley Street in West Melbourne, has been acquired for $7.29 million by developer Jinding.
JLL Melbourne director Nick Peden disclosed that the property’s expression of interest campaign had received more than 150 registrations, with six formal offers submitted.
Early reports on the EOI campaign noted that the venue was forecast to fetch a sale price ranging from $6 million to $7 million, with the longstanding tenants during the campaign paying $245,203 per year.
He also noted that there was equal interest from investors and developers showing strong interest in the Melbourne central business district fringe location.
“We had huge interest in the site as it ticked a lot of boxes for buyers, including its superb location and the significant rental income derived from an iconic tenant,” Mr Peden said.
Jinding chief executive Jay Song stated that the building’s high-profile location and its potential for redevelopment in future years made the asset an “appealing investment”.
The theatre restaurant, which was listed on the market at the start of October by JLL with a sale price guide of $7 million, boasts a location overlooking Flagstaff Gardens and is a mere 500 metres from Queen Victoria Market.
Adding to its appeal is the asset’s reputation for being an iconic entertainment venue in the local scene for more than three decades.
According to its listing, the property also features three street frontages, including a rear laneway, and comprises 742 square metres of mixed-use land.
For Jinding, the acquisition does not only mark the firm’s foray into the commercial property sector.
The asset buy is also considered by the Melbourne-based firm as a “significant addition” to its residential portfolio, which is currently valued at $2 billion and includes master-planned communities, the $370 million The Patch in the Wollert Growth Corridor and the $270 million Harriott at Armstrong Creek.
“This acquisition adds to the diversity within our property portfolio with high potential for a mixed-use project down the track and strong demand for boutique developments in city fringe locations.
“We are focused on opportunities to invest with a long-term strategic view, positioning us to capitalise on future growth in sought-after locations such as this one. This site presented an opportunity for Jinding to value-add through refurbishment or for redevelopment in the longer term,” Mr Song stated.
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