This article is from the Australian Property Journal archive
A MALAYSIAN investor has snapped up a Melbourne CBD retail and warehouse, operating as a cafe, on a record tight yield of only 1.6%.
Located at 361-365 Little Lonsdale St, the property is one of the last remaining warehouses in the CBD.
Colliers International’s Oliver Hay, Daniel Wolman and David Sia negotiated the sale of the property in an off market transaction, on behalf of a locally based Hong Kong group.
Sia told Australian Property Journal that the Malaysian private investor has paid $11.125 million and the yield of 1.6% is indicative of the strong appetite for assets in a prime location.
The approximately 611 sqm land area is currently improved by a retail warehouse and it is leased to cafe, event and entertainment venue and art gallery space, 1000 £ Bend.
It is returning an annual rental of $180,000 with fixed increases.
Sia said the buyer saw the property’s development potential.
Australian Property Journal
