A historic two-storey corner block in Melbourne’s Lonsdale Street Greek precinct has sold for $10.15 million.
The retail asset sold on a tight yield of just 3.94 per cent.
Savills Australia’s Nick Peden, Clinton Baxter and Benson Zhou, in conjunction with Burgess Rawson’s Jamie Perlinger, brokered the deal on behalf of the local investor vendor at a rate of $53,989 per square metre.
Peden says the scarcity of Melbourne CBD property on the market is apparent among active buyers.
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“As a result, there is significant pent-up demand, which is leading to strong sale results… setting the precedent for the rest of the year,” Peden says.
Built in 1891, the property at 185-187 Lonsdale Street has long been celebrated as the home of International cakes in the city’s Greek precinct.
The Lonsdale street location and reliable long-term tenants were stand out features to the Chinese buyer, according to Zhou.
Baxter says more than 100 parties had expressed their interest in the property, and several offers were received with several disappointed under-bidders who missed out.
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Savills expect an active 2018 due to increased buyer demand and upward strength of the CBD market, combined with ever-increasing population growth, low vacancy rates and increasing rents.