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Pacific
Bondi Beach millionaire trio buys Bondi Beach milk
bar for $19.12m -
21st September 2016
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by Su-Lin Tan
The team behind the award-winning Pacific
Bondi Beach hotel and residential project, Rebel Property
Group's Allen Linz, Capit.el Group's Eduard Litver
and Gil Baron have splashed out $19.12 million for
one of Bondi Beach's most iconic retail assets, the
1951 Bates Milk Bar on Campbell Parade.
The beach-facing corner property 124
Campbell Parade, right on Bondi Beach's busiest thoroughfare,
will now be known not only for its once "famous
choc-malt milkshakes" but for having one of the
tightest net yields, at just over 3 per cent post
sale.
The building, which attracted the who's
who of the Sydney development and investment community,
is said to have a residential potential upside. For
now, the trio plans to hold it as an investment.
"We are massive believers in Bondi," Mr
Linz said.
"It's actually very exciting [getting the site]
against heavy competition. We are not here to gentrify
Bondi but to add our stamp to the most iconic beach
in the world."
Any future redevelopment of the milk bar would include
a retention of its "essence", Mr Linz added.
Prominent eastern suburbs businessman Theo Onisforou
bid for the property and so did prestige residential
developer Danny Avidan, who recently snared the once-controversial
prime Bronte RSL site which will yield 21 luxury apartments
next year.
The 45 minute auction for the milk bar opened at
$10 million and was fought out at $500,000 bids until
about $16 million. Then it was just a duel between
Mr Onisforou and the Pacific Bondi trio to the very
end.
Telco TPG's Teoh family also made an appearance at
the auction, with a strong interest in the milk bar
as an investment, but did not bid.
The Bates Milk Bar closed in 2001, after operating
for over 50 years.
The 1920s freehold commercial property is currently
leased to retailers Platypus Shoes, Gelatissimo, Natalie
Alamein, Mezi Retail and also offers three residential
tenancies. It receives a net annual income of over
$600,000.
It was a "once in a lifetime opportunity",
Colliers International's Miron Solomons said.
Mr Solomons sold the property with colleague Matt
Pontey and Cushman & Wakefield's Anthony Bray.
"Interest has never been higher for Bondi and
will continue to swell in 2016 as further new developments
are completed," Mr Bray said.
"This renewed interest in living in the beachside
community, has seen residential and commercial property
prices hit record levels."
The acquisition of the milk bar would be strategic
for the new vendors' whose Pacific Bondi Beach hotel,
residential and retail mecca - a conversion of the
former Swiss Grand Hotel - is just two blocks away
on the same street.
That development is now home to some big names.
A company linked to Andrew Roberts, the former chief
executive of Multiplex bought its 900sq m penthouse
off the plan for $21 million two years ago.
Rugby league star Sam Burgess also has an apartment
in the development, which also exhibits art in its
atrium including those by Ingo Bracke and Yolgnu artist
Gunbyi Ganambarr.
The high end QT Bondi Beach is the hotel operating
on the premises.
(The Australian Financial
Review)
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