The former home of Australia’s longest-running theatre restaurant - Dracula’s Cabaret Show & Dinner in Melbourne – has been sold unconditionally to a Melbourne based Chinese investor for in excess of $10m.
The CBRE Melbourne City Sales team of Mark Wizel, Josh Rutman and JJ Heng, in conjunction with Chris Mulcahy of Mulcahy Butera, negotiated the sale of 100 Victoria Street, which attracted 15 initial offers as part of the public expressions of interest process.
The property was home to the renowned theatre restaurant Dracula’s Cabaret Show & Dinner for 37 years before it shut its doors in December 2017. Being offered with vacant possession and a fully fitted theatre space, the speculated sales price reflects a market yield of around 3% and a record land rate for Carlton of approximately $21,600 per sqm. Given the property’s eight level height limit, the outstanding result sets an aggressive new benchmark for one of Melbourne’s most densely populated precincts.
Mr Rutman commented that the sale was a great illustration of the depth in buyer interest for blue chip properties in Melbourne.
“The level of participation was very strong, but the origins of these bids were even more telling, with student accommodation developers, high net worth privates who live in the area, local hospitality operators and Asian investors and developers vying for a slice of Carlton land,” Mr Rutman said.
“Despite considerable interest from significant property investors with holdings in the precinct, a first-time entrant to the Melbourne commercial property market was the eventual purchaser, acquiring the historic building on a short settlement with no due diligence just one week after the close of the campaign.”
Mr Wizel who worked closely with the eventual purchaser, said that assets proximate to private and government infrastructure investments were continuing to attract interest from a growing list of buyers from Mainland China and Hong Kong.
“Melbourne is considered a very safe and transparent market, and when Asian capital is looking to acquire real estate, being near major government infrastructure and thousands of residential dwellings provides a certain level of dependability and comfort,” Mr Wizel said.
The sale comes off the back of a string of strong results for vacant buildings in both the Melbourne CBD and the city’s northern precinct. In December 2017, the ‘Central Club Hotel’ at 240-246 Victoria Street sold for $7.9m at auction, and more recently both 22 Sutherland Street and 21-23 Elizabeth Street, Melbourne sold under the hammer for $6.25m and $9.62m respectively.
The next major test in the northern section of the Melbourne CBD will be the result of the sales campaign of the former home to Discount Seamart at 678 Elizabeth Street which closed its doors earlier this month after 40 years in operation. The high-profile value add opportunity is expected to sell for in excess of $6m and is being marketed by CBRE.
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