Prime Camberwell commercial block sells for over $10 million

A prime commercial landholding in Camberwell has sold to a local buyer for $10,050,000 at auction.

The 1,965 sqm block at 398-410 Burke Road comprises six adjoining retail and commercial freehold buildings in the South Camberwell Retail Village.

The Bakers Wife bakery, the restaurant Squires Loft, Kinban Building Consultants, Dealing in Design and Rod Lord Restorations are just some of the tenants.

Savills Australia agents Jesse Radisich, Nick Peden, and Benson Zhou secured the sale at a tight 1.65% yield and a land rate of $5,120 per sqm within one week following the close of expressions of interest. 

They had strong interest from offshore and local buyers.

Radisich said numerous international and local buyers were attracted to the site’s significant existing rental income, prime location, development potential, and the scarcity of the offering in terms of scale. 

“398-410 Burke Road lends itself to a host of possible outcomes,” Radisich said.

“In a very positive sign of strength in the market, a cashed up local buyer was able to outbid strong off-shore and other local interest, with an incredibly short settlement period of just 23 days.” 

“The property is located in a Commercial 1 Zone, and the current owner was very deliberate in not putting in place any long-term leases at the property which would restrict short-term development potential.

"This of course makes the site ideal for a prime mixed-use development in the near future.”  

Nick Peden said it is rare for a site of this scale to be offered to the market within a prime retail strip.