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APBC to Sell Retail Component of 480 Collins Street, Melbourne

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Written by Marc Pallisco   
Monday, 08 March 2010 21:02

AFTER paying GIO $16.5 million for 480 Collins Street, and then converting the building into a serviced office and apartment complex, Asian Pacific Building Corporation – owned by establishment family the Deagues – are selling the development’s strata titled ground floor retail component.

APBC can expect to make about $11 million from the portfolio of nine fully leased shops, returning between $32,000 and $87,000 in annual rent.

CBRE’s Mark Wizel, who is marketing the property with Max Cookes and Sebastian Drapac, says average yields for sub $2 million retail investments – of which all the APBC shops are - now circles between 5 and 6 per cent, an improvement on the average 6 to 6.75 per cent, recorded last year.