Melbourne, 9 March 2014 – Private Chinese investors have acquired all three retail properties at the ground floor of the HERO complex situated in the heart of Melbourne’s CBD.
Located at 114 Russell Street on the corner of Little Collins Street, the properties are securely leased to well-known retailers and represented an attractive investment opportunity in the sub $5 million category.
A private Chinese investor acquired a 20sqm property currently leased by patisserie Brioche by Philip for $1.05 million and a 281sqm store occupied by fashion retailer Chiodo for $2.1 million.
A separate Chinese buyer purchased the adjoining 235sqm property within the building for $1.61 million. The retail space is currently leased by Japanese restaurant Izakaya Den.
Josh Rutman, Ed Wright and Mark Wizel from the CBRE City Sales team negotiated the three sales on behalf of well-known Melbourne investors Phillip Maynes and Peter Bartholomew, who decided to offer the properties in response to the current buoyant market conditions.
Mr Rutman said the competitive Expressions of Interest sales process attracted offers from a range of local and offshore investors, with a record yield of 6.55% achieved for the basement property.
“The sale of each of these properties at 114 Russell Street are further evidence of the strong demand coming from buyers to secure sub $5 million retail investment opportunities in the Melbourne CBD,” Mr Rutman said.
“In recent years, there has been a significant shift towards retailing both above and below ground, and this has given investors confidence to pay strong prices to acquire such properties, with the gap between values paid for basement and ground floor properties in the city closing.”
The Hero complex benefits from a high profile corner location on Little Collins Street at the ‘Paris End’ of the Melbourne CBD and is regarded widely as one of prominent architect Nonda Katsalids finest CBD works.
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