Alley Building, Flinders Lane, Sold For $10.25 Million

THE art deco Alley Building, on the corner of Exhibition Street and opposite the Collins Place twin towers, has been snapped up by a private investor for $10.25 million.

Alexander Robertson selling agents Kristian Peatling and Warwick Bramich, who sold the building with Teska Carson's Andrew Morley, said private investor demand for the fully refurbished 1940s office was strong, despite quivers associated with the global economy.

They said the new owner planned to keep the asset, which has 1842 sq m of A-grade office space over five levels and three ground-floor shops, as an invest-ment. The property sold on a low yield of 6.65%.

"The level of interest from private investors seeking quality investment property up to $25 million remains unchanged since last year," he said, adding a lack of stock for sale was contributing to some healthy prices being achieved this year.

The Alley Building is the latest in a string of small CBD offices to find new owners. Last month, Carlow House at 34 Eliz-abeth Street sold to the Berger family for $19 million. The office component of the Australian Natives Association Building sold for $9.6 million, while 128 Exhi-bition Street is believed to be close to sale, for about $16.5 million.

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