This article is from the Australian Property Journal archive
A PRIVATE investor has put $2.105 million on the tab to buy the Orange Bar on Melbourne’s chic Chapel Street, on a tight yield of 3.8%.
The prime corner retail freehold at 124 Chapel Street Windsor was sold at a hotly contested auction conducted by Savills Australia with several bidders out of a 100 strong crowd.
Selling agents Nick Peden and Ryan McCormack said the result reflected the prime location, quality of tenant, lack of stock and the popularity of the precinct among retail tenants.
McCormack said the property had attracted around 100 enquiries and over 30 inspections. He said the purchaser was a local private investor seeking to hold the property long term.
“The market for retail investments in high profile locations is very strong and tight yields are being accepted by investors due to the lack of stock and volatility in the equities market,” Peden said.
The two-level building includes a ground floor retail shop of 65 sqm and a four bedroom dwelling accessed from Duke Street. The 204 sqm site enjoys a 6.1 metre frontage to Chapel Street.
The retail component of the property is leased to Orange Bar on a 5+5 year lease at $46,865 p.a., and although the dwelling was offered with vacant possession, it is estimated that the total fully leased rental would be around $80,000 p.a.
The agents said the property also offers significant redevelopment potential for a retail and apartment development (STCA).
Australian Property Journal
