Strata owners unite, sell Armadale investment
The owners of eight strata units in a prominent office and retail investment in the ritzy High Street, Armadale, commercial strip, have sold to a single party.
The two storey building on 1773 square metres at the north east corner of tree-lined Huntingtower Road collected $25 million.
Interests associated with residential real estate agency Marshall White – an occupier – were amongst the sellers.
The deal comes three months since we reported 73 strata owners sold an inner-Sydney hotel to an asset manager planning a build to rent conversion.
In 2021 meanwhile, developer Oreana Property Group spent $35m for a South Yarra site offered by 11 parties.
“The amalgamation of the eight unit holders was identified almost 18 months ago with a substantial premium being achieved for each of our Vendors,” Mr Davies said of the Armadale campaign.
Record land, building rate
The result for 1097-1111 (commonly known as 1111) High St reflects a low four per cent yield.
With 2442 sqm and 55 car parks, the weighted average lease expiry is 5.1 years.
Ten offers came in, Cushman & Wakefield’s Oliver Hay, who brokered the deal with George Davies, Daniel Wolman and Leon Ma, said “with the sale setting a…benchmark for both land and building rate”.
“The result highlights the strength of demand for quality, income producing assets in Melbourne’s inner east,” he added.
“The amalgamation process was no small feat, but the outcome speaks for itself – this is a landmark transaction in a market that continues to reward strategic vision,” according to the executive.
Last week a nearby site – a long-time gym occupied by Goodlife, covering 1926 sqm, zoned Commercial 1, hit then market with $25m-plus price hopes.
Toorak office under offer
Meanwhile, a Thailand syndicate is understood to be in negotiation for St Germain on Toorak Road.
The two year old, nine level office hit the market with c$200 million price hopes.
The result is believed to be about this amount.
An “under offer” sticker was put over the for sale banner this week.
Bill McNee’s Vicland is the developer and seller.
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