Prominent South Melbourne buildings fetch $17m
A prominent retail investment with imminent development upside opposite South Melbourne Market and near that complex’s car park entrance, has sold for $17.25 million.
Local private investors traded 131 Cecil Street and 304 Coventry on a 4.34 per cent net passing yield.
Chef’s Hat has occupied the corner tenancy (131 Cecil St), which is also double storey, for 27 years.
Its lease expires in March.
The neighbouring building, over one floor, is leased to Bed Bath n Table, which is on a month-to-month tenancy.
All up the lettable area is 1963 square metres.
The plot spreads 1391 sqm zoned Commercial 1, allowing residential in any redevelopment.
Held 45 years
CBRE’s Trent Hobart, Nick Peden and David Minty with Fitzroys’ Mark Talbot, Lewis Waddell and Tom Fisher marketed the properties, held 45 years.
“Ultimately a local investor secured the property ahead of multiple developers and owner occupiers,” they said.
“They key attraction…was the location, being in such close proximity to the South Melbourne Market, Melbourne CBD, retail amenity and public transport,” they added.
The result was against a $15m guide.
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