CBRE exclusively sold 300 Smith Street in front of a crowd of 200 people, with the property strongly contested by six bidders, before being purchased by an offshore investor.
Located in the heart of one of Melbourne’s most popular dining and retail precincts, the two level retail freehold building comprises 255sqm and is occupied by the award winning Saint Crispin restaurant.
CBRE’s Rorey James, who steered the sales campaign in conjunction with fellow agents Ed Wright and Josh Rutman, said the property attracted an unprecedented and diverse pool of aggressive buyers.
“This property received in excess of 120 enquiries from local, interstate and offshore investors,” Mr James said.
“The sale price reflected an extremely tight yield of 3.2%, which is indicative of the increased confidence in these secondary retail precincts and the shortening gap between prices being paid for prime and secondary retail investment assets.”
“Volatility in the equities markets together with the continued lack of supply of quality retail opportunities is causing a flight to quality from investors,” Mr James explained, adding that due to the low cost of debt, banks were competing aggressively against one another to lend on prime property.
He commented: “The ongoing impact of increased interest from offshore buyers for Melbourne commercial property is causing strong competition between offshore and local buyers to secure these properties.”
CBRE is expecting to see a similar level of investor demand, when it auctions two separate retail properties next month.
626 Burke Road, Camberwell, is a super prime freehold investment comprising 238sqm. The property is currently leased to two tenants including House – Australia’s largest kitchen and dining-ware retailer.
he property, which also includes redevelopment potential, will be sold via auction on August 8.
CBRE has also been appointed to steer the sale of a mixed use freehold investment property at 627 High Street, Kew.
The three level building benefits from a long-term and diverse income profile, with it fully leased to Hooking Bar & Restaurant and i2C Architects.
The property, comprising a total land holding of 251sqm and 530sqm of building area, will be auctioned August 28.
