Mornington's 'Barkly Square' shops for sale after receivers appointed

Domain Group data shows the property last sold for $3.6 million in 2006 to Torca Constructions Pty Ltd, which according to ASIC records is currently under the administration of Cor Cordis.

The property comprises nine retail units on 2029 square metres, with the agents advising that there is the potential for future development subject to council approval, including the possibility of selling them down individually.

The property is returning a net annual income of $476,365. Tenants include The Cheesecake Shop, Manhattan in Mornington, Beaches of Mornington and Gods Kitchen.

Mr James said the property was likely to attract interest from a range of buyers drawn to the site’s size and future potential.

“The nine retail units will provide strong income for investors, while there is also plenty of flexibility for groups looking to add value given the large land holding,” Mr James said.

“Aside from the two major shopping centres, Barkly Square is the only retail island site in Mornington. Opportunities like this rarely come to market, and it may be a long time before something similar is offered.”

Long regarded as a summer destination for Melburnians, the growing reputation of the Mornington Peninsula as a year-round destination and its increasing popularity with city buyers would also contribute to buyer interest.

“Buyers, particularly those familiar with the area, recognise the growing demand for residential accommodation and are typically willing to pay a premium if a property has redevelopment potential,” Mr James said.

“CBRE has handled 22 of the 28 investment transactions that have taken place on the Mornington Peninsula since 2016. We have seen first hand the increase in buyer interest, particularly on strips like Main Street, Mornington, Ocean Beach Road, Sorrento, and Point Nepean Road, Rosebud.”

Mr Hage said that the fundamentals of the local leasing market were also strong, with the town serving as a hub for the wider region.

“Mornington’s Main Street has some of the lowest retail vacancy in Victoria, often below 2 per cent,” Mr Hage said.

Mr James declined to give a price guide but pointed to several recent transactions in the area as proof of the strength of the local commercial market, including the sale of a retail site at 69 Main Street, Mornington, for $2.7 million to a domestic investor who has intentions to redevelop the property within the next decade.

CBRE also conducted the $39.4 million sale of Mornington Village Shopping Centre in 2018 to a Chinese investor and the 2016 sale of 9-13a Main Street for $5.4 million to a Melbourne solicitor, who is currently in the process of adding residential accommodation to the rear of the property.

Earlier this year the Sportsgirl building in Sorrento – about 40 kilometres south-west of Mornington – sold to a Melbourne-based buyer for $4.7 million.