This article is from the Australian Property Journal archive
A Hong Kong-based investor has paid $14.21 million for 254 Collins St, on a tight yield of 4.42%.
Colliers International’s Matthew Stagg, Daniel Wolman and Nick Rathgeber as well as Savills’s Clinton Baxter and Nick Peden sold the property, which is the first freestanding building (sub $100 million) to be offered for sale in the prime Collins, Elizabeth, Bourke and Swanston block for a decade.
“We received 15 offers from both local and offshore purchasers and shortlisted five – this is a sign of the strength in this market,” Baxter said.
“The success of, and response to, this campaign is a demonstration of the depth of demand for prime Collins Street and other CBD retail properties,” Stagg said.
The three-level building comprises 398 sqm and is leased to Kookai on a new eight plus eight year lease from May 2013. The retailer has let the property since 1998.
The lease is returning a net income of $628,740 per annum plus GST.
Property Review