A Melbourne based investor has paid $3.4 million on a sharp yield of 4.94 percent for a Southbank retail complex.
A Melbourne based investor has paid $3.4 million - well above initial expectations of around $2.8 million - on a sharp yield of 4.94 percent for a Southbank retail complex.
Savills State Director, Clinton Baxter who managed the auction campaign with Jesse Radisich and Benson Zhou, said the property had attracted enormous local and off-shore interest with a strong Asian contingent.
He said strong and competitive bidding from the start had resulted in a fast moving auction and a great result for the vendor.
“This was an outstanding result for a property which offered all of the key attributes of a blue chip investment including a government tenancy, a long lease, the potential for very strong rental growth as the area continues to develop, and significant depreciation benefits.
“The massive response from interested parties during the campaign underlined just how robust the investment market is for well-located retail property,” Mr Baxter said.
The 152 Sturt Street property comprises six shops totaling 1080 square metres of retail space including a brand new fit-out. The property was sold fully leased to the City of Melbourne at a net annual rental of $168,105 on a five year term with options.
The property comprises the ground floor of the hugely successful 317 apartment Guild development with all apartments selling prior to the building’s completion.
The vendor was the developer behind the Guild project.
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