This article is from the Australian Property Journal archive
CHINESE property developer Hengyi has sold a Melbourne CBD café for $4.71 million, the largest ground floor shop sale in the city this year.
The sale of the 518 Little Bourke Street property reflected a rate of $14,125 per sqmand sub-5% yield.
It sold with a 10-year lease to Little Billy Café and is part of Hengyi’s William Court portfolio, comprising eight retail shops and two offices, which was listed for sale earlier this year.
A Melbourne doctor purchased the property following an expressions of interest campaign handled by CBRE’s Tom Tuxworth, Paul Tzamalis, Nick Lower and Josh Rutman.
“With more than 130 enquiries and six offers received, the strong level of interest shown in this property highlights the continued demand for income producing assets and at this lucrative sub-$5million price point,” Tzamalis said.
Tzamalis said the sale also highlighted the recent upturn in SMSF investing.
“The purchaser leveraged off his SMSF together with other family members to secure this asset, which is becoming a more widespread trend given the recent legislation updates from the government on contributions,” he concluded.
Australian Property Journal
