This article is from the Australian Property Journal archive
A MELBOURNE-based investor/developer has paid a record land rate for industrial zoned land of $8,594 per sqm in Richmond.
The 77 Murphy Street property on Melbourne’s city fringe sold under the hammer for $2.75 million, $250,000 above reserve and at a tight 3.4% yield.
It is located on the corner of Vaughan St and comprises a single level, 320 sqm warehouse to office conversion, with on-site parking, two street RSD access points, and storage. It sold subject to a short-term lease with a current net annual return of $94,500.
The land rate easily covered the previous record of $6,613 per sqm set 12 months ago for 32 Crown St in the suburb.
Teska Carson’s Tom Maule and Matthew Feld sold the property, which attracted five bidders at auction.
“This is an outstanding result and a reflection of the massive spike in demand for office space in the Richmond area with the former warehouse being successfully transformed into boutique office space,” Maule said. “We can expect to see more of those sort of conversions as industrial landlords seek to realise the full potential of their properties.”
Feld said tenant demand for properties of this type is high as is, but with the significant potential to add value it also attracted a strong purchaser contingent looking at its development prospects.
Australian Property Journal
