CBD Development Group – renowned nowadays for its major apartment projects – has sold a prominent East Bentleigh retail asset.
Occupied until recently by Target, but offered with vacant possession, 401 Centre Road traded to a China-based buyer for $9.6 million.
An under-bidder, according to sources, was retail giant Chemist Warehouse which planned to owner-occupy.
With retail below two office levels, the investment has the potential to earn annual rent of $400,000, the brokers said.
On that basis, 401 Centre Road is selling on a 4.2 per cent market yield.
CBD Development Group, owned by Chen Guo Jin, listed the East Bentleigh asset for sale after a short campaign to lease it earlier this year.
Target closed its doors last December, ending its tenancy in January.
The property was strategic for the retailer: providing shoppers a walk-through to a Coles supermarket and car park behind.
Until a recent split, Coles and Target were controlled by one Wesfarmers entity.
CBD Group developed the mixed-use Bentleigh Centre at 285-305 Centre Road, in the area.
It also behind Brunswick’s tallest apartment building rising 12 storeys at 288 Albert Street, near the north-west corner of Sydney Road.
In 2017, the developer paid $36 million for Mt Eliza’s 63-hectare Morning Star mansion and vineyard – a site offered with a permit for a 72-room hotel.
That same year, it paid about $5 million for a 3193 sqm Brighton East site on Union Street which backs onto linear park Little Brighton Reserve.