This article is from the Australian Property Journal archive
TOWNHOUSES are expected for the current home of the 23-room Box Hill Motel in Melbourne’s eastern suburbs, after a China-based developer picked up the 4,041 sqm landholding for $5.95 million.
The motel has a lease in place until May 2020 that returns a net income of $175,534 per annum. The price reflects a tight yield of 2.95%, as well as a land rate of $1,472 per sqm.
Zoned general residential 3, the site lends itself to a range of development outcomes including apartments and townhouses. Savills agents Nick Peden, Jesse Radisich and Benson Zhou, who handled the sale in conjunction with Nelson Alexander, said the buyer is planning on a townhouse project down the track.
The sale attracted 48 site inspections and interest from over 160 groups, resulting in 26 offers to purchase and a price $1.95 million above expectations.
Interest came from parties in China, Singapore, Hong Kong, Malaysia and USA, the agents said.
