Melbourne, 28 September 2015 –– Two neighbouring commercial properties positioned along the Nepean Highway in Cheltenham have been sold to a locally based Chinese developer for $9,150,000.
The properties, known as 1234 and 1236 Nepean Highway, have a combined land area of circa 1,930sqm and feature an existing vacant warehouse and office building currently tenanted by employment and training services organisation ‘Skills Plus’.
The deal was brokered by Mark Wizel, Ed Wright and David Minty of CBRE’s Victorian Development Sites’ team. The team was appointed to sell 1234 Nepean Highway but saw an opportunity to amalgamate the neighbouring property at 1236 Nepean Highway.
“The vendors for both properties were extremely happy with the combined sale arrangement and price outcome, identifying that the sale yielded them between 10% – 15% more than the estimated market value should the properties have been sold individually,” Mr Wizel said.
Mr Minty added; “Combined, the properties offered the purchaser a larger development floor plate to work with and, most notably, would potentially achieve a greater height.”
Other positive attributes included the sizeable street frontage, rear laneway access and Activity Centre Zoning which all underpinned the ability for the purchaser to deliver a higher density residential or mixed use development on these properties subject to the relevant planning approvals.
Whilst the property fundamentals were compelling, CBRE’s Mr Wright said the location was another primary contributor to the strong sale result.
“Cheltenham is a vibrant and eclectic bayside location which is undergoing significant growth due to its high level of amenity and proximity to the CBD,” Mr Wright said, adding that Cheltenham had a great shopping and café lifestyle, parklands and schools, some of Melbourne’s best golf courses and was located in close proximity to the beach.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
