Melbourne based civil engineering company Universal Corporation has acquired a CBD ground floor retail space for $1.85 million – following a series of recent acquisitions by the company in the Melbourne commercial and residential markets.
The 72sqm retail site, located at Unit 1, 50 Market Street, features expansive street frontages, modern café fitout, abundant natural light, and prime CBD location in close proximity to Collins Street, the Legal Precinct, Bourke Street Mall, Crown Casino and Flinders Street Station.
The site was sold with a new lease to Mermaid Dog, a recently established local café with a strong customer base. The tenant has taken over an existing lease, which provides a strong income stream of approximately $73,000 p.a.
CBRE’s Nick Lower, Tom Tuxworth and Paul Tzamalis negotiated the sale on behalf of the private vendor via an off market campaign. The sale represented a yield of 3.9 per cent.
Mr Lower said the prime CBD positioning and established local tenant with strong trading history were key selling factors.
“Universal Corporation already owns a number of strata office floors within 50 Market Street, and this latest acquisition demonstrates its continuing interest in investing in the area – underpinned by growing confidence on the back of surrounding developments," he said.
“With significant investment in the CBD area recently from groups such as CBUS, local investors such as Universal Corporation are taking advantage of the opportunity to buy well located sites while interest rates are low.”
With a keen interest to continue investment in the Melbourne market, Universal Corporation are also gaining momentum in the residential sector.
“Whilst the Chinese stock market drops 8.5 per cent, local investment is increasing, with Universal Corporation extending their residential portfolio with the recent launch of a 220 townhouse and apartment site in South Morang and the upcoming 1000 lot master planned development in Wallan,” Mr Tuxworth added.