Chinese property developer Hengyi has sold the home of a popular Melbourne café for $4.71 million – marking the largest ground floor shop sale in the CBD for 2016.
The 518 Little Bourke Street property, which is leased to Little Billy Café on a 10-year term, forms part of Hengyi’s William Court portfolio - listed for sale earlier this year – comprising eight retail shops and two offices.
CBRE’s Tom Tuxworth, Paul Tzamalis, Nick Lower and Josh Rutman negotiated the sale on behalf of Hengyi to a Melbourne doctor and his family via a strongly contested Expression of Interest campaign.
“With more than 130 enquiries and six offers received, the strong level of interest shown in this property highlights the continued demand for income producing assets and at this lucrative sub $5million price point,” Mr Tzamalis explained.
“With a 10-year lease in place, this property represented an attractive opportunity to acquire a secure retail asset with immediate income.”
The property sold for a building rate of $14,125 per square metre – reflecting a yield of sub 5.0%.
Mr Tzamalis said the sale also highlighted the recent upturn in SMSF investing.
“The purchaser leveraged off his SMSF together with other family members to secure this asset, which is becoming a more wide spread trend given the recent legislation updates from the government on contributions,” Mr Tzamalis explained.
The next asset to test the market will be the sale of 405 Collins Street – a fully leased basement and ground floor property in Melbourne’s sough after mid-town precinct.
Offering a building area of 730sqm, the property benefits from Collins Street retail precinct and an existing outdoor seating permit.
The property is being offered for sale via onsite auction December 1.
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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.
