A private Chinese family has acquired a Balwyn freehold property for $6.18 million,demonstrating the continued strong demand for strategic strip retail investments in Melbourne.
CBRE’s Victorian Strip Retail Investments team of Josh Rutman, Rorey James, Mark Wizel and Benson Zhou negotiated the sale of 313-315 Whitehorse Road, which is located in the booming inner eastern suburb of Balwyn.
The 701sqm property was sold with existing leases to established bedding retailer Back to Sleep and creative agency Web Silk on a WALE of four years. The tenancies provide a strong annual income of $376,000 net.
The sale price translates to a building rate of $8,819 per sqm – one of the strongest rates on record for the area.
Mr James linked this to strong result to continued buyer confidence in Melbourne’s inner east, particularly as the sale price represented an approximately $3 million increase from the last time the property transacted three years ago.
“The transaction provides further evidence that strip retail investments outside Melbourne’s prime retail precincts continue to be coveted assets, with these properties consistently achieving prices far above long term averages. This trend is a result of the lack of prime opportunities available within the current market, coupled with the record low interest rate environment.”
Mr Wizel added that the current market reflected a 'perfect storm' for landlords of these strip retail properties, with local and offshore buyer demand reaching some of the highest levels seen in decades.
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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 (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.