This article is from the Australian Property Journal archive
DEVELOPER Jinding has been revealed as the buyer of Melbourne icon Witches in Britches, announcing potential plans for a future mixed-use residential development.
The developer snapped up the 78-86 Dudley Street West Melbourne site last week for $7.88 million on a 3.36% yield, citing the building’s high-profile location overlooking Flagstaff Gardens and close proximity to the Queen Victoria market as providing plenty of re-development potential.
“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,” said Jay Song, CEO at Jinding.
Song noted the property was a significant addition to its already $2 billion strong residential portfolio, which includes its $370 million The Patch in the Wollert Growth Corridor and the $270 million Harriott at Armstrong Creek.
“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,” added Song.
Throughout the expressions of interest campaign for the dinner theatre venue, Nick Peden, director at JLL Melbourne, reported receiving over 150 enquiries and six formal offers, from investors and developers alike.
“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,” said Pedan.
“The site is right on the cusp of the CBD in West Melbourne, which is an area going from strength to strength. There are several major government-funded infrastructure projects underway such as the $11 billion Metro Rail Development with Arden Station to be located just 1.2km from the site.”
Pedan also noted West Melbourne’s growing residential pipeline, with 2,300 units across residential, build-to-rent and student accommodation in the works.
Spanning 1,050sqm across two levels on 742sqm of prime Mixed Use land, Witches in Britches has run at the location for more than 30 years and brings in a net rental return of $245,203 per annum, with a five-year option to continue operations at the site.
The current fit-out includes a stage, dining hall, bar, and back-of-house facilities on the ground floor, with an office and storage areas on level one.
The sale is scheduled to settle in February of 2023.
