Private Investor Spending Splurge

Private investors spent more than $12 million in Melbourne’s inner eastern suburbs this week, buying retail showrooms, office buildings and development sites.

The biggest sale was at 524 Bridge Road where an 887 square metre showroom, leased to clothing retailer Kathmandu for five years sold at auction for $5.15 million. Allard and Shelton selling agent Joseph Walton said that, based on the rent the tenant was paying, the showroom sold on a low yield of 4.85 per cent.

Nearby in Swan Street, a showroom office building with redevelopment potential sold for $3.1 million. Formerly occupied by floor tile retailer The Olde English Tile Factory, the building sold with vacant possession, and is now expected to be put to the market for lease. Teska Carson selling agent Michael Taylor, who sold the property with Ian Price, said on a fully let basis, the property sold on a yield of 5.8 per cent.

Meanwhile in Collingwood, a developer plans to build an 80-unit apartment tower on a 2742 square metre development site he bought at 34 – 44 Stanley Street, for $4.4 million. Knight Frank selling agent Nick Peden said “the confidence of the inner city market is immense, with developers being very aggressive in their quest to secure sites

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