- Strong competition resulted in the two shops in “The Edition’ building sold for a total of $2,608,713
- 150 enquires were received, short settlement of 30 days
- CBRE sales team say they have recently seen strong confidence from buyers
Two shops in Melbourne’s ‘The Edition’ building was sold for a total of $2,608,713 after strong bidding from a mix of domestic and international investors.
Shops 4 and 6 at 517 Flinders Lane saw over 150 enquiries and were sold on an unconditional basis which saw a relatively short 30-day settlement period.
Currently, they are leased to hospitality tenants Delhi Street and Hunter Roots who have five- and six-year terms respectively.
The combined annual net income of both shops totals over $122 000.
Alex Brierley, Nathan Mufale and JJ Heng from the CBRE managed the sale following the highly competitive expressions of interest campaign.
Mr Brierley and Mr Mufale both agree the sale shows Melbourne’s CBD retail sector is still highly sought by investors – despite Melbourne’s multiple lockdowns and current restrictions.
Public and private offices in the CBD have a cap of 50% thus limiting the number of visitors to the CBD, however, it appears this has not affected investor’s confidence.
“The sales represent an enormous vote of confidence in the Melbourne CBD retail sector and the continued investor demand for income producing assets,” said Mr Brierley.
“This is being underpinned by record low interest rates and a shortage of well-located opportunities”
Mr Mufale also added the team has facilitated high values of sales in recent times.
“We have experienced a notable increase in buyer confidence and activity post Melbourne’s Stage 4 lockdown period, with our team transacting over $40million in property in the past six weeks,” he said.
The sales represent a yield of 4.75% and 4.65% at shops 4 and 6 respectively.