Brunswick Market up for sale again
The Sydney Road property last sold just two years ago for $17 million
Tuesday, April 5, 2022
THE Brunswick Market in Sydney Road has been put up for sale for the second time in two years, with the sale price expected to push towards $20 million.
The joint owners of the 3000 square metre site are selling to concentrate on other ventures.
The site, which was once owned by convicted drug kingpin Tony Mokbel, was bought by a joint venture of Canberra property developer Molonglo Group and the founder of the Aesop skin business, Dennis Paphitas, for $17 million in 2020.
Selling agent Jesse Radisich from JLL Capital Markets declined to comment on the price being sought by the vendors, but confirmed it would be in excess of what they paid for the property, which at the time was a new land value benchmark for a major landholding.
He said there had been strong interest from within Melbourne and nationally with the sale process closing on April 20.
The market site fills most of a full block between Sydney Road and Breese Street, with 232 metres of frontage onto four streets. Its total area is 3059 square metres.
It is in a Commercial Zone 1 area which allows a range of uses including retail, apartments or offices. The agents say there is precedence for a development of up to nine-storeys in height.
“The most likely outcome is probably development,” Mr Radisich said.
“There’s also the opportunity to land bank it and they may want to continue the operation or even revitalise the market and hold it long term, but it’s probably an opportunity to develop.”
The site has clearly seen better days, with several vacant shops within the arcade. It began operating as a fresh produce market more than half a century ago and prior to 2020 had not changed hands for 16 years. Current tenants also include a shoemaker and a mobile phone repair business. The second floor is occupied by a reception venue.
Meanwhile, further south on Sydney Road towards the Melbourne CBD, the Sarah Sands Hotel has been sold for a reported $8.75 million.
Peregrine Properties sold the pub after developing a modern six storey apartment building at the rear of the site and securing a 30-year lease of the renovated pub to Australian Venue Co.
It was sold at auction on March 30, with spirited bidding pushing the price well above the $7 million that had been quoted during the sale process.