A Chinese investor has capitalised on the development potential of a prominent sports club in Moonee Ponds, purchasing the three-storey Junction Club for $10.7 million.
CBRE’s Justin Clarkson and Scott Callow marketed the 740 Mt Alexander Road property on behalf of private syndicate United Investment Management, sourcing the offshore buyer post-campaign.
Located approximately 7 kilometres from the Melbourne CBD, the high profile club features a public bar, bistro, TAB gaming area, 80 gaming machines, office space and a 29-space capacity car park.
The property is currently majority leased by Harness Racing Victoria, which has occupied the building for several years.
Mr Clarkson said the property’s close proximity to the Moonee Valley Racecourse and the potential for high rise residential development in the future were both key selling features.
“With the Moonee Valley Racecourse redevelopment located across the road, the Junction Club is in a prime spot to capitalise on the increased patronage generated from this significant urban renewal project,” Mr Clarkson said.
“Under the Moonee Valley Structure Plan, the site has potential for high rise residential development in the future - providing confidence in the underlying value of the property, which is underpinned by the secure leases currently in place.”
Mr Callow said the facility represented an attractive investment opportunity.
“Harness Racing Victoria has operated a highly successful gaming venue from the property for several years, which was a major drawcard for the successful buyer who was looking to acquire a secure investment,” Mr Callow said.
The Moonee Valley Racecourse development is a major mixed use project that will combine approximately 2,000 medium to high density residential dwellings with a diverse commercial and recreational centre. The project will also see the Moonee Valley Racecourse undergo a major revamp to improve its facilities and unlock the surrounding area’s wider potential.
“Once this development is complete, Moonee Ponds will be home to a diverse population, supported by a range of quality community facilities and infrastructure – all of which the Junction Club will benefit from,” Mr Clarkson said.