Melbourne, 24 May 2016- A local buyer has outbid a Singaporean investor to purchase a retail shop at 516 Little Bourke Street for $1.45 million.
The property has a seven year net lease in place to boutique food and beverage operator, Mr Q, and benefits from a high-end fit out and large outdoor seating area. It is located at the base of The William - one of Melbourne’s newest hotel and residential projects.
CBRE’s Paul Tzamalis, Tom Tuxworth and Lewis Tong marketed the property on behalf of the owner who was a private family from China.
Mr Tzamalis said the property was the first publicly offered ground floor retail sale in The William since its recent completion by prominent development company Hengi.
“There is an unprecedented demand for retail being fuelled by a lack of options available to investors in the CBD. Buyers are realising that their money is better off in income producing strata assets versus low returning bank accounts,” Mr Tzamalis said.
“There is a serious lack of freehold building opportunities in the CBD under $10 million at present, resulting in investors flocking toward securely leased retail.”
With recent interest rate cuts making it even more enticing for investors to leverage off the banks debt offering, it is expected that more vendors will look to take advantage of this historically low interest rate market.
“Interestingly, the purchaser of 516 Little Bourke Street is a repeat purchaser of this type of asset, owning two other retail shops in the CBD’s retail core and operating a retail business along Swanston Street for over 30 years.”
“After speaking with the purchaser (who has chosen not to be named), he mentioned that given the success and capital growth of his existing retail shop portfolio he felt it was a great time to buy and secure an income for his family’s future,” Mr Tzamalis added.
“The sale of 516 Little Bourke Street marks the fifth local buyer to buy through us on the last five CBD campaigns of properties under $20 million.” Mr Tuxworth mentioned.
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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 (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.