Letten receivers sell Flinders Lane building

Letten Group receivers have recovered $13.31 million offloading a historic Melbourne CBD office and retail investment.

Savills’ Clinton Baxter and Nick Peden auctioned 167 – 173 Flinders Lane before some 250 people yesterday.

At the south-west corner of Hosier Ln, the five storey property was previously controlled by Mark Letten and celebrity health expert Dr John Tickel who paid $3.67m in September, 2001.

Three years later the owners obtained a permit for a four level extension.

It is unclear whether the as-yet-undisclosed incoming owner will proceed with that.

Property investor David Marriner, who owns the Forum Theatre behind 167-173 Flinders Ln (and recently purchased the Church of Scientology’s outgoing Russell Street headquarters) was an unsuccessful bidder.

Mr Baxter said based on the potential fully let annual income ($636,000) the city asset traded for a 4.8 per cent yield.

Mr Peden added the price values every sqm of area at $7090.

The last major city property sold at auction was 454 Collins St, in 2007, which was picked up by serviced office operator Christie for $17.8m.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.