This article is from the Australian Property Journal archive
A MARATHON auction of a five-level Bourke Street mixed-use building in Melbourne’s CBD that lasted two hours and generated 661 bids has resulted in an unprecedented $15.205 million sale, more than $4.2 million above reserve and at a sharp 2.99% yield.
The Art Moderne 220 Bourke Street brick freehold, of 1,170 sqm and on a 201 sqm site, has four storeys and a basement levels occupied by residential and commercial tenants, and features a private rooftop terrace with potential commercial activation in future.
Originally the Old England Hotel, it was designed in the 1930s by prolific Melbourne architect, Harry A Norris.
It was purchased by Spiros Alysandratos.
Current return on the property is $453,950 per annum net from multiple income streams, with Cotton On Body the major tenant, and the property is individually subdivided offering the flexibility to sell down.
It is positioned between Swanston and Russell Streets in the bustling eastern precinct of the CBD, home to some of city’s most popular hospitality venues, and on the corner of Latrobe Place, which runs through to the nearby Chinatown precinct.
Eight bidders competed for the asset, which was put to the market for the first time in more than 80 years, and attracted over 300 people to the lunchtime auction.
Colliers International’s Oliver Hay, Daniel Wolman, Matthew Stagg and David Sia marketed the property.
The sale is the latest in a string of Melbourne CBD building sales, with the two-level building nearby at 288-294 Russell Street reportedly selling for more than $5 million after 54 years of ownership within the family of businessman Gerald Alexandratos.
The 338 sqm site Alexandra Building was formerly a pub and now comprises five shops and four office spaces, currently bringing $202,150 per annum and offering redevelopment potential.
Last month, a Chinese party paid $10.5 million for the three-level 550 sqm CBD building at 185-187 Lonsdale Street, home to iconic Greek eatery International Cakes and new nightclub Storyville, at a 3.94% yield.
The former home of the Royal Antediluvian Order of Buffaloes, next to Guildford Lane, off La Trobe Street, was picked up for $6.25 million by developer and hotelier Ozzie Kheir.
Over the summer, a local buyer purchased the 300 sqm home of steak restaurant A Hereford Beefstouw at 22 Duckboard Place for $4.35 million, at 4.50%.
The expressions of interest campaign for the premises of Italian restaurant Bottega is currently open. The two-level retail building at 72-74 Bourke Street, between Grossi Florentino and Pellegrini’s Espresso Bar, is expected to fetch more than $5 million.
Australian Property Journal
