We recently sold 613 St Kilda Road, Melbourne following an Expressions of Interest campaign.
The commercial property, which hadn’t been publically offered for 20 years, comprised a 5 level 1980s standalone office building occupying a corner site of 1,038m2 and provided a passing return of $291,000 net per annum. The building which was configured with demolition clauses offered vacant possession in 2017 and was sold with the benefit of a Rothe Lowman development scheme for a 20 level residential development.
The campaign drew significant interest from both local and offshore buyers culminating in over 100 enquiries with a mix of interest from passive investors, developers and local owner occupiers.
The building offered a rare entry level St Kilda Road opportunity and generated strong interest from commercial real estate investors seeking to reposition the asset moving forward with a number of developers also vying for the property. The property was eventually sold for $12.1 million to a locally based large scale CBD Chinese developer who out muscled a number of investors, owner occupiers and multiple developers. The result was some 30% above the $9.5 million expectation and reflected a low yield of 2.4% and $11,700psm on land area.