Melbourne developer Andreas Angelatos made the winning bid at a fast and extraordinary auction yesterday, at which a small Toorak property sold for $7.41 million – a staggering $2 million over the reserve.
The 471 square metre holding at 617 Malvern Road was contested by numerous parties.
Called on the market at $5.4 million, there was fresh bidding, even when the offers reached $6.45 million.
Within five minutes of Teska Carson inviting the first bid, attendees valued the site at more than 25 per cent over the reserve.
Several prospective purchasers were still interested when pricing soared over $7 million, demonstrating the depth of demand for building blocks in the suburb regarded as Melbourne’s most exclusive.
The land is zoned Commercial 1, meaning it can make way for a variety of development outcomes including residential.
Mr Angelatos’ price values every square metre at a high $15,732.
Within the Hawksburn Village retail strip, and at the north west corner of Mathoura Road, 617 Malvern Road is configured with a double storey brick building containing ground floor retail and upper level offices.
Behind this structure is a single-storey showroom and five on-site car parks.
Marketing agents Matthew Feld and Michael Taylor promoted that the investment was rented at below market levels (based on the passing annual income of $158,224, the Toorak property is trading on a 2.1 per cent passing yield).
Assuming the potential annual rental return of $198,224, the (market) yield is 2.7 per cent.
Mr Angelatos declined to comment about his plans for the site.
The developer is said to have acquired a large commercial property portfolio during the 1990s recession.
Agent Matthew Feld declined to comment about the purchaser when contacted.
But of his campaign, the executive said “a lack of premium quality city fringe stock lead to massive amounts of interest from all segments of the market, developers, occupiers and investors”.
Last October, we reported about a block of flats at 1 and 1A Mathoura Road – next door to 617 Malvern Road – which sold for $5.2 million, or a million more than the reserve.
In April, high profile businessman Larry Kestelman (pictured, below), the owner of Australia’s National Basketball League, and also a developer paid about $9 million for a 1123 sqm Toorak building block on Williams Road, opposite Como Park.
In July, private investor Brendan Sullivan outlaid more than $8 million for a double storey Toorak office at the opposite end of Mathoura Road to 617 Malvern Road, fronting the Toorak Road retail strip.
Hawksburn Village is at the southern tip of Toorak. Buildings across the road from 617 Malvern Road, on the south side of the street, are zoned Prahran.
Mr Feld said yesterday’s deal is the sixth asset in a row Teska Carson has transacted in Hawksburn.
The broker added all the deals he has sealed have exceeded vendor’s expectations and demonstrate the “pent-up demand” for holdings in the tightly held retail strip.