Ari and Sam Herszberg behind Yarra Junction shopping centre buy

The Zagame family has sold the Woolworths-anchored Yarra Junction shopping centre in the Yarra Valley.

It has sold for about $19 million to interests associated with Ari Herszberg and Sam Herszberg, Nine Entertainment reported.

The 3500-square-metre neighbourhood centre stands on an 8188 sq m site at the 2450 Warburton Highway location.

It was first put up for sale in October last year expecting to capitalise on a recent population surge in the outer eastern town.

The Woolworths anchored neighbourhood centre’s 11 specialty stores include an optometrist, bakery, chemist, and Bendigo Bank, which, together with the Woolworths store, returning circa $1.24 million per annum net. 

It has 100 percent occupancy from non-discretionary retailers.

CBRE agents Justin Dowers and Mark Wizel signalled $20 million hopes for the centre that had a strong trading history for over 25 years, and has continued to benefit from a consistent growth tourism within the Yarra Valley Region.

"There is a clear opportunity to add value to this centre," they said, adding it was "very well placed to benefit from any capital investment." 

Based on the annual rental return of $1.3 million, the registered vendor, Zagame Yarra Junction Pty Ltd, was seeking to offload Yarra Junction on a passing yield of around 6.5 per cent.

It is understood the sale of Yarra Junction was brokered by Stuart Taylor and Tom Noonan of JLL.