The Freshwater Place home of TGI Fridays has been sold under the hammer for $6,532,500.
The CBRE Melbourne City Sales team of Julian White, Nathan Mufale, Alex Brierley and Leon Ma steered the auction sale in front of a crowd of approximately 100 attendees.
Four bidders fought it out to secure the two-level, 461sqm strata shop, which sold under the hammer for well above the $6,150,000 reserve. The sale price reflected a building rate of $14,170/sqm and a yield of 5.4% based on a lease to the global TGI Fridays restaurant brand.
“The pricing reflects the chronic shortage of available stock for sale in the Melbourne CBD,” CBRE’s Mr White said.
“Most of the enquiry and bidding came from investors who we had been actively pursuing Melbourne CBD investments but crossed the river to view this Southbank asset given the lack of options.”
Mr Mufale noted that another driver of interest was population growth in the area and associated demand for hospitality-focused retail assets.
“Continued population growth in the Melbourne CBD and city fringe is supporting strong interest in properties suited to food & beverage tenants and will support future rental growth for high exposure sites in prime locations,” Mr Mufale said.
Freshwater Place comprises 536 apartments well as ground floor retail space leased to high profile tenants including McDonalds, Subway, 7 Eleven, Meat & Wine Co and Shuji Sushi.
The two-level TGI Fridays tenancy, known as Unit 1R, offers direct frontage to Southbank Promenade and is close to the corner of Queensbridge Street.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.
