This article is from the Australian Property Journal archive
TWO prime Melbourne CBD retail properties have been sold for a total of $7.2 million.
Fitzroys city retail team sold the properties, Shop 6 & 7, 306 Little Collins St and 134 Elizabeth St.
Shop 6 & 7, 306 Little Collins St sold at auction for $2.4 million on Thursday before a large crowd. The two strata shops comprised a total area of 80 sqm, including mezzanine, and leased to Café Insieme. The price reflected a tight yield.
Charles Emmett said 134 Elizabeth St was sold in front of a crowd big enough for police to be called in to manage the surrounding traffic. The vacant retail freehold sold to a private local investor for $4.8 million, some $300,000 above the reserve price. The property comprises a land area of 115 sqm and a building area of 200 sqm, and is located within close proximity to Bourke St Mall.
Emmett said the Melbourne retail investment market is running at a good pace.
“In the sub $15 million private investment market there has been approximately 43 sales transaction totalling just under $115 million since January.
“The Fitzroys city retail team had sold 10 Melbourne CBD properties in the past few months with a total value of just over $29 sqm, including a 2 sqm kiosk sold in Causeway House for $380,000 and a Foodworks at 323 La Trobe St for $6.15 million on a yield of 2.36%.
Michael Ryan said the agency received record volume of enquiries for each property.
“The capacity for the city of Melbourne to add more population compared to say the Sydney CBD, which is almost at capacity, is certainly a major growth factor that many investors cite as one of their attractions to Melbourne CBD retail properties,” he added.
He said the profile of buyers was a 50/50 balance of local and offshore investors. Fitzroys will be auctioning the retail shop at 22 Russell Place, at the base of Nonda Katsalidis designed “Little Hero” apartment complex, on Friday, 6th December.
Property Review
