Investor pays cash for $11m CBD building
A China-based investor has paid $11 million for a double fronted, two storey building at the top of town.
The vacant property on 188 square metres at 423-425 Elizabeth Street last accommodated a restaurant.
Prior to that and for more than 10 years, it was home to Spot On Motorcycles.
CBRE’s Alex Brierley, Nathan Mufale and JJ Heng represented the vendors, which held it since 1976.
The buyer is paying cash with a 90 day settlement.
The deal comes seven months since a single-fronted double storey retail investment on 105 sqm at 469 Elizabeth St traded for $5.2m – reflecting a three per cent yield.
Land rate of $58,500 per sqm
Six offers were received for the 315 square metre building at 423-425 Elizabeth St (story continues below).
“Given the property was offered with vacant possession, sourcing a diverse pool of cash buyers who were not reliant on bank funding was critical in generating competitive bidding in the process and achieving a premium outcome for our client,” Mr Brierley said.
“These transactions demonstrate the long-term confidence investors have for the Melbourne CBD and in particular well located main street assets that been held by some families for generations,” Mr Mufale added.
“Following Melbourne’s extended lockdown period in 2020, the severe lack of purchasing opportunities is resulting in pent up demand from opportunity starved investors taking a long-term view on the Melbourne CBD,” according to the agent.
Last July, PDG Corporation launched a leasing campaign for the 2000 sqm retail component of a mixed-use complex taking shape at the Munro site, opposite Queen Victoria Market.
Several major skyscrapers are also under construction in the area including a Build to Rent tower, which will be held by Mirvac and three offices, forming part of a biomedical precinct, on Elizabeth St north of Victoria.
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