A Richmond showroom – part of racing car driver Ray Christie’s estate and held by the family for some 70 years – sold at auction on Wednesday for $5.575 million to Spotlight Group.
Six other suitors contested for 613-617 Bridge Road which was marketed to developers and investors for its longer term potential to make way for an eight level building.
The deal values every square metre of the Commercial 1 zoned site at $8603.
Based on the the annual net rental ($154,999) it also reflects a 2.8 per cent yield.
The incoming owner intends to hold the property as an investment however, being in a prime part of the street, near Hawthorn, it may consider occupying.
Gorman Commercial’s Tom Maule and Stephen Gorman set a guide of about $5m when it was listed last month (story continues below).
Demand for quality commercial real estate “enormous”: agent
“It was an extremely strong result and showed the enormous demand for quality commercial real estate,” Mr Maule said following the auction. “With interest rates at record lows, people are no longer wanting to hold money as the returns are so low”.
“We expect yields to compress further particularly for quality assets with quality lease covenants,” the agent added.
Also today we reported Fortis is paying $19m for a 1298 sqm parcel at 2-8 Brighton Street in the suburb with plans for a 10-level office and residential building.
Grocon, which put its construction business into administration, with GIC, in July appointed Hacer to replace Richmond Plaza at the north west corner of Bridge Rd and Church St with a $220m Build to Rent based village.