Chinese investors have shown their confidence in Melbourne’s retail market, snapping up three assets for a combined $6.848 million.
CBRE’s Rorey James, Lewis Tong, Nic Hage, Nathan Mufale and Jimmy Tat negotiated the portfolio sale via auction on behalf of a local Chinese vendor. The sale reflected $1.448 million above reserve and an average yield of 2.9%.
The portfolio comprised three south eastern offerings in the suburbs of Ormond and Glen Waverley – 556-559 North Road, 660-662 Waverley Road and 3 Glenwood Ave.
The North Road property – and arcade style building comprising 10 shops on a 602sqm allotment – sold under the hammer for $2.98 million. The sale reflected a yield of 2.2%. A keynote tenant included popular Mountain of Bears Café.
The second property at 660-662 Waverley Road consists of a 1,118sqm corner landholding leased to a car wash operator. The property, which sold 18 months earlier for $2 million, was purchased for $3.051 million – reflecting a yield of 3.8%.
The final property, 3 Glenwood Avenue, is a single fronted retail investment. The property sold for $817,000 on a yield of 3.8%.
CBRE’s Lewis Tong said the sales highlighted the strong demand from offshore capital for Melbourne property.
“Chinese investment appetite in the Melbourne market remains strong, outbidding local buyers in each of these three auctions,” Mr Tong said.
“The transactions reflect an increased demand for well-located income producing opportunities in strategic positions that offer long term development potential.”
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