Property Development

Zagame family sells Yarra Junction shopping centre for c$19 million

Zagame family sells Yarra Junction shopping centre for c$19 million
Written by The ReReport
As seen in the Source link, written by realestatesource.com.au on 2019-05-29 20:16:59

The Zagame family has finally sold the Yarra Junction shopping centre in Melbourne’s outer east.

The asset is speculated to be trading for about $19
million to Melbourne private investors Ari Herszberg and Sam Herzberg.

It was listed last October with $20 million price hopes.

On the Warburton Highway, about 55 kilometres from the CBD, the 3501 square metre complex was acquired by the Zagame family in 2004.

Leased to 11 speciality stores and a Woolworths supermarket, and returning annual rent of $1.24 million, Yarra Junction is trading on an approximate 6.5 per cent passing yield.

The 3501 square metre complex occupies an 8230 sqm site zoned Commercial 1.

The complex occupies a 8230 sqm block zoned Commercial 1 and therefore appropriate for a mixed-use redevelopment containing residential in the longer term.

JLL’s Tom Noonan and Stuart Taylor brokered the deal, reported today by both the AFR and propertyobserver.com.au. The agents declined to comment when contacted.

Following the death of veteran investor Victor Zagame Senior in 2017, the family business is run by his sons, Victor Junior and Robert.

In February we reported that the group was paying the Australian Education Union Victorian division $21 million for the historic Austral Silk and Cotton Mills warehouse at 112-124 Trenerry Crescent, Abbotsford, in Melbourne’s inner north-east (pictured, below).

The red-brick Austral Silk and Cotton Mills warehouse, built in 1927, will be retained, after selling to the Zagame family following a campaign targeting developers.

Last October, the
family offloaded a portfolio of pubs
to New York-based investment bank Moelis
for about $271 million.

In March, it unveiled the Zagame House luxury hotel brand following the $18 million refurbishment of the former Downtowner in Lygon Street, Carlton.

The family is expected to expand the Zagame House marque in Queensland and New South Wales over coming years.