A block of 14 student accommodation studios opposite Deakin University’s Burwood Campus has sold under the hammer for $3.105 million - $605,000 above the reserve price.
The 216 Burwood Highway property was purchased by a Chinese investor, who outbid five other local and overseas parties to secure the block at a sharp 4.2% yield. It marks their first property investment in Australia.
CBRE Melbourne’s Mark Wizel, Nathan Mufale, Dylan Kilner and Leon Ma transacted the sale through an international marketing campaign. Mr Mufale noted the sale price represented a new record for Burwood with the property selling for $221,786 per unit and at a land rate of over $5,175 per square metre.
“This is a landmark result for student accommodation and demonstrates that investors are willing to invest in alternative and strategically located assets in Melbourne Suburbs,” Mr Mufale said.
Mr Kilner added: “Buyers were initially hesitant due to the property’s lack of development upside and concerns over capital expenditure requirements. However, the CBRE Melbourne team was able to instill confidence in prospective buyers, highlighting the exceptional growth in international students at Deakin University and growing demand for accommodation in the area.”
“Our campaign was strongly focused on uncovering new international buyers, with CBRE’s Asian Service Desk discovering the final purchaser,” Mr Kilner concluded.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.