Sorrento in fashion as Sportsgirl joins retail rush
Shops along Melbourne’s holiday hotspot Sorrento’s main strip are continuing to trade at pace, with a property leased to women’s fashion brand Sportsgirl the latest offered up.
Six shops along the popular Ocean Beach Rd strip have been sold by one agency alone in the last three years, and Sportsgirl could soon join them as it goes up for auction on the Labour Day long weekend.
Properties have sold regularly on the normally tightly-held strip in recent years, with the most recent sale of a Country Road outlet reaching $7.125 million on a yield of less than 4%.
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Prior to that the suburb’s cinema complex sold for $5 million, while a shop leased to surfwear giant Ozmosis fetched $4.7 million.
The sale the started the run – the almost $11.5 million paid for a Sorrento’s Mitre 10 in March, 2016 – came on a staggeringly low yield of just 0.4%.
The Sorrento property has a significant land component.
Sportsgirl, at 54-56 Ocean Beach Rd, occupies a 574sqm site however the store is on just 183sqm, with the remaining land vacant at the rear.
CBRE’s Rorey James, Mark Wizel, Nic Hage and JJ Heng have been tapped to sell the property, marking the seventh property the agency will have sold in Sorrento in the last three years and – if successful – its fourth consecutive year with a Labour Day sale.
While Sportsgirl currently occupies the shop for $112,617 annually, James hints the land component and its development potential could be its biggest drawcard.
“The property’s location is a key selling point, along with its underlying land value and the strength of its covenant,” he says.
“In recent years we have seen the Mornington Peninsula become a well-recognised retail investment location due to the abundance of high-trading, national retailers present in the area.”
Sportsgirl Sorrento also has rear exposure to a large council car park with free parking.
The property will be auctioned on Saturday, March 9 on-site at 11am.
