Golden Age director Jeff Xu sold a Melbourne CBD building for $14.5 million at auction last week – shortly after a deal for a portfolio of five shops, worth $13.615 million.
The vacant five-storey asset auctioned at 12-14 McKillop Street (pictured, top) hit the market in August with price expectations of about $12.5 million. Mr Xu bought it in 2015 for about $10.5 million. It had previously traded for $4.3 million in 2010.
It sold this time around to members of the Mantzis family.
Formerly part occupied by a nightclub, the 1529 sqm building sits on a 361 sqm plot with redevelopment potential.
Mr Xu had planned to refurbish it into a boutique office and retail complex.
The property is next door to the Foundry complex which is being developed by ISPT and Brookfield.
Coincidentally, this development consortium paid $14.05 in August for 362 Little Collins Street, which also abuts the Foundry project. Like 12-14 McKillop Street, 362 Little Collins Street rises four storeys from a small site (312 sqm).
The same agency represented Mr Xu in the sale of five tenanted and adjoining shops on the ground and first two floors of the 76-storey Victoria One residential tower at 452 Elizabeth Street (pictured top, left).
Based on the portfolio’s annual rent ($750,000) the sale price of $13.615 million delivers a passing yield of 5.5 per cent.
In August we reported Golden Age outlaid more than $30 million for a 21-hectare land parcel in Rockbank, 29 kilometres west of the Melbourne CBD. This block is now earmarked for a new housing estate, Willowbank.