Strong buyer competition has resulted in the sales to an offshore investor of two shops in Melbourne’s ‘The Edition’ building for a combined total of $2,608,713.
The 31sqm and 61sqm square metre shops, which are leased to hospitality tenants Delhi Streets and Hunters Roots, were sold with five- and six-year leases respectively. The respective net incomes are $77,715 and $44,900 per annum.
The CBRE sales team of Alex Brierley, Nathan Mufale and JJ Heng managed the sales of Shop 4 and 6, 517 Flinders Lane, following a highly competitive Expressions of Interest campaign.
“Following a campaign that generated more than 150 enquiries, the shops were sold on an unconditional basis and short 30-day settlement following strong bidding from domestic and international investors,” Mr Brierley said.
Shop 4 transacted for $933,713 representing a yield of 4.75% and a building rate of $30,119/sqm while Shop 6 transacted for $1,675,000 representing a yield of 4.65% and building rate of $27,459/sqm.
“The sales represent an enormous vote of confidence in the Melbourne CBD retail sector and the continued investor demand for income producing assets. This is being underpinned by record low interest rates and a shortage of well-located opportunities,” Mr Brierley continued.
Mr Mufale added; “We have experienced a notable increase in buyer confidence and activity post Melbourne’s Stage 4 lockdown period, with our team transacting over $40million in property in the past six weeks.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
