Melbourne, 22 May 2014 – A Malaysian investor has acquired a high-end strata office with panoramic views of the Melbourne CBD for $4.28 million – the largest strata office sale since 2012.
CBRE Strata Projects agents Tom Tuxworth, Ed Wright and Chris Pharr negotiated the sale on behalf of a local private investor via an Expressions of Interest campaign.
The 530sqm office property covers the entire fifteenth level of 9 Yarra Street in South Yarra and was sold with approved plans for permits for an additional level as well as 12 onsite secure basement car parks.
The sale, which marked the fifteenth transaction by CBRE Stata Projects in 2014, demonstrates the current appetite for strata titled offices, with this sale being the third in as many weeks to be purchased by an offshore entity.
In recent weeks, two offshore developers have purchased new headquarters in the Melbourne CBD at level one, 414 Lonsdale Street and level four, 20 Queen Street – further demonstrating the current demand for development sites both in the city and St Kilda Road boulevard.
Mr Tuxworth commented: “As evidenced by this transaction, the current lack of supply for strata titled offices both within the Melbourne CBD and city fringe locations, is resulting in premium prices for those willing to run public campaign and capitalise on competitive tension in the market.
“The introduction of offshore groups and the competition they have created has resulted in building records being broken and then broken again.”
Mr Wright and Mr Pharr said the property was sold on a passing yield of 3.8% after a competitive sales campaign.
“We received more than 40 enquiries from local and offshore investors wanting to make a foray into the high profile South Yarra district,” Mr Wright said.
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