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Written by Marc Pallisco
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Monday, 12 July 2010 00:13 |
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 RECEIVERS for the Letten Group have recovered $13.31 million from the sale of a historic Flinders Lane office and retail building.
Savills agents Clinton Baxter and Nick Peden sold 167 – 173 Flinders Lane at auction yesterday, in front of a crowd of some 250 people.
The property, on the south-west corner of Hosier Lane, was previously controlled by Mark Letten and celebrity health expert Dr John Tickel, who paid $3.67 million for the asset in September 2001.
A permit to build four levels above the existing five level structure, was approved in 2004. It’s not yet known whether the new and as-yet-undisclosed owners, will exercise this development option.
Mr Baxter said based on the building’s fully let potential annual rental income of $636,000 the building sold on a yield of 4.8 per cent.
Property investor David Marriner, who owns the Forum Theatre behind 167 Flinders Lane, and recently purchased the Church of Scientology’s outgoing Russell Street headquarters, bid unsuccessfully at the auction.
Mr Peden said the price reflects a rate of $7090 per square metre of space, indicating confidence has returned to sub $20 million CBD office sector.
According to the agents, the last major CBD property to sell at auction was in 2007, when 454 Collins Street sold for $17.8 million to serviced office operator Christie.
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