An investment property with development upside in the eastern Melbourne suburb of Hawthorn has sold for $25 million – a substantial rise on the $17 million the vendor paid two years ago.
LYZ Property Group – a subsidiary of China’s Hengmao Group – is selling the asset to another Chinese investor.
Zoned Commercial 1, which allows for high density residential redevelopment, the 2593 square metre site at the north-west corner of Golding Street, includes a 4427 sqm fully-leased showroom which returns annual net rent of $786,344.
Based on that return, the asset (pictured top, left and bottom) is trading on a tight yield of 3.15 per cent.
The holding, about 450 metres from the Glenferrie train station and five kilometres from the CBD, is occupied by bedding store Snooze, Sofas Direct and National Storage.
The deal comes a week after another commercial building in Melbourne’s exclusive eastern suburbs – 255 Whitehorse Road, Balwyn – sold to China-based investor Glorious Sun for $18.3 million ahead of a scheduled auction.