Strategic South Melbourne office sells for $14 million – a 53 per cent rise in two years
The private investor who contested 21 bidders at a public auction to snare a then-vacant, low-rise South Melbourne office building for $9.1 million in 2016, has flipped it.
Following an off-market deal, 9-17 Raglan Street (pictured, top) has just traded to a China-based investor for $14 million – a 53 per cent uplift.
The sale price reflects a low market yield of 3.4 per cent.
The block is strategic, being across the road from low-rise and historic homes which are not zoned to allow for high rise redevelopment.
As such, 9-17 Raglan Street, which rises four storeys, will arguably enjoy permanent CBD view security.
The 1696 square metre property on an 835 sqm block with 29 car parks was marketed this year by Knight Frank’s Andrew Hansen, Danny Clark and George Burbury.
Last March, businessman Michael Buxton, director of MAB Corp, paid $9.1 million for the neighbouring four-level office at 19-25 Raglan Street. This building is similar in size (1689 sqm) but on a smaller 712 sqm block.
