Melbourne, 04 November 2015 – Strong investment appetite for retail investments in Melbourne has underpinned the sale of a Hawthorn café property at auction for $1.15 million.
The auction of 737 Burwood Road was hotly contested, with five bidders competing for the property, driving the price upwards from the first bid of $800,000.
CBRE Melbourne Strip Retail Investments Rorey James, Jackie Hanna and Paul Tzamalis handled the sale of the property, which was sold on a yield of 5.3%.
Selling agent Rorey James said the property attracted strong interest from both local and offshore parties.
“In a sign of continued market strength, the property was on the market following the first bid of $800,000. It was keenly contested by a number of bidders, before being knocked down to a local buyer and regular customer of the café,” Mr James said.
“The 5.3% yield was considered strong, given the shops off street location, however, the low interest rate environment continues to encourage investors to pay sharper prices to secure these retail investment assets,” Ms Hanna added.
The property is leased to Café Jitters on a five-year lease, with options until 2025.
For Australian/international news or global stories, follow us on Twitter.
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.
