The recently refurbished property, at the corner of Swanston Street and Little Lonsdale Street was tenanted to five separate retailers, and returns $357,800 per annum in rent. Rental levels were considered below market value, which contributed to a low yield of 2.74 per cent.
“The property attracted enormous levels of interest due to its exceptionally strong location, modest rental levels and future development potential,” said Knight Frank selling agent Clinton Baxter who sold the property with Langton McHarg.
The sale was the thirtieth straight property the Baxter & McHarg duo have sold successfully at auction. It follows the recent sale of the Surf Dive n’ Ski store in Bourke Street, which sold for $9.3 million, or $2.3 million over its reserve.