This article is from the Australian Property Journal archive
A PRIVATE offshore investor has acquired a boutique five-storey retail building at Russell St in Melbourne’s CBD for $9 million, reflecting a record land rate of $75,000 per sqm and tight yield of 3.8%.
Colliers International’s David Sia, Oliver Hay, Daniel Wolman, Hamish Burgess negotiated the off market sale of the 205-207 Russell St property, which occupies a 120 sqm site. Lawyer Thomson Geer’s Eu Ming Lim acted for the buyer.
Sia said the boutique building was rebuilt in recent years, breathing new life while maintaining the heritage façade. The property is currently tenanted by famous Malaysian hospitality tenant “Sugarbun” across three levels.
“The price achieved for the property shows the demand for boutique freestanding buildings such as this,” Sia said. “The current lack of opportunities in the Melbourne CBD, due to the tightly held nature of this asset type coupled with the lowest interest rates in Australian history, is creating strong competition.”
Wolman said there was no slowdown from offshore investors amid talks of funding issues.
“We are meeting multiple new investors every week and continue to receive global interest for assets in the Melbourne CBD and fringe,” he said.
Colliers International is currently marketing 235-237 Faraday St in Carlton on the market, which is scheduled to go under the hammer this week with price expectations in excess of $5 million.
Australian Property Journal
