Fashion brand Lovisa eyes Hawthorn property record
The Hawthorn headquarters to fast fashion brand Lovisa is up for grabs with expectations of a $25 million price tag far removed from those of its affordable accessories.
At such a figure the three-storey office building at 818 Glenferrie Rd, Hawthorn, would become the suburb’s second priciest property sold to date.
And it’s thanks in part to the stylish anchor tenant, which moved in late last year as demand for office space in the suburb soars.
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Gorman Commercial managing director Stephen Gorman says the property has already received strong interest and the site is most likely to sell to a wealthy private investor lured by the multinational tenant on a five-year lease.
“Having a mixed use development of retail and offices outside of the city at this level is extremely sought after,” Gorman says.
“Hawthorn is extremely strong and Glenferrie Rd would be considered one of the pre-eminent strips in Melbourne.”
CBRE’s Mark Wizel is also working on the sale and says strong demand from tenants across Melbourne’s inner suburbs is helping to drive the commercial market, and that there is a historic low vacancy rate for office space in Boroondara.
Lovisa’s fast fashion line includes affordable jewellery and accessories.
“With virtually zero new construction of new office accommodation in the precinct, there will continue to be upward pressure on rentals for buildings like 818 Glenferrie Rd,” Wizel says.
Retail spaces along Glenferrie Rd, Hawthorn, have been selling at about $18,000-$19,000 a square metre in recent months as a result of that demand.
A sales figure beyond $25 million will mark a windfall for the owner who paid $8.43 million for the building in 2004, according to CoreLogic records.
A recent refurbishment has added value, Gorman says.
“Based on the current rental we are expecting a yield of 5%,” Gorman says.
CoreLogic records show Hawthorn’s highest property sale was for a commercial office building at 2 Luton Lane. It changed hands for $37.36 million in 2016.
If the Glenferrie Rd property tops $25 million it will be the suburb’s second highest selling commercial property, nudging out 290 Burwood Highway, which sold for more than $23 million. It will also pass the suburb’s top residential property sale — a $22 million sale for 21 Coppin Grove in 2013.
This article from Leader Newspapers originally appeared as “Lovisa HQ part of eight-figure hopes for Hawthorn commercial hub”.
