This article is from the Australian Property Journal archive
A PROMINENT corner building at 344-350 St Kilda Rd, St Kilda has been sold by Fitzroys for $2.7 million on a 4.2% yield.
Fitzroys agent Mark Talbot said the property was put on the market for the first time in 40 years.
The property returns $115,000 plus all outgoings, was sold subject to a short-term lease due to expire in July 2016. There is no option available to the tenant to extend. Talbot said whilst the property was sold subject to a short term lease, the site was primarily underpinned by a substantial land size of 675 sqm with a combined street frontage of 55 metres.
Leased to Crane Distribution Limited trading as Tradelink, it was purchased by an investor who intends to landbank the site.
Talbot said the sales campaign received significant interest from investors and developers.
“Investors were keen to acquire the site due to the strong lease covenant and the liability of the tenant to pay land tax as Crane Distribution is a subsidiary of a public company,” he continued.
He said the final sale price reflected a rate of $4,000 per sqm over the site area.
“The site has enormous potential when you consider and compare two current developments in the immediate area, namely at the corner of St Kilda Rd and Inkerman St and also the corner of Alma Rd and St Kilda Rd. Both these sites are currently under construction and range from five to 13 levels in height,” he pointed out.
Property Review
