Melbourne CBD prime retail space sold for $12 million
By Joyce R. | December 21, 2010 7:29 PM EST
A landmark in the city’s central business district, the former McGill’s book store, was sold in a competitive auction for $12.04 million.
Five bidders were competing for the iconic CBD building, which was offered for sale through Sebastian Drapac and Mark Wizel of CB Richard Ellis. It was sold with a price of $25,242 per square meter. The two level retail building is located nearby Bourke Street Mall, and opposite Melbourne’s
Drapac said there has been strong enquiry from both local and offshore investors, with multiple offers to acquire the building pre-auction. The eventual buyer was a local private investor, keen to gain a foothold in the Melbourne CBD retail market.
“The deal highlights the continued investor demand for properties in the CBD retail core despite some of the recent negative press in relation to rising interest rates and retail spending,” Drapac said.
“We are seeing continued confidence from retailers and landlords – particularly in prime locations such as Bourke Street Mall – as highlighted by the major refurbishments of Myer and David Jones.” CBRE’s Mark Wizel said the sale of 193 Elizabeth Street was the latest in a series of prime CBD retail investment deals, following the earlier sales of 389 Swanston Street and Bradman’s building at 270-272 Bourke Street.
“There is a distinct demand/supply imbalance for properties of this caliber,” Wizel said. “The sale of 193 Elizabeth Street presented a rare opportunity to acquire a centrally located, freestanding investment with a significant percentage of the income underwritten by long leases to well performing national food and beverage tenants.”
More from IBT Real Estate:
Subscribe to newsletter delivered to your inbox twice weekly
To contact the editor, e-mail:
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- $2B Lease By American Investor On Philippine Island For 25 Years
- Australia Second Highest Overpriced in World in Housing Prices
- France, Germany Lead Europe's Commercial Real Estate Market
- New Crowdfunding Firm Focuses on Alternative Mortgage Financing
- Real Estate Investing Is ‘All Local,’ Says Canadian Portfolio Manager
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- Microsoft Doubles OneDrive Space To 30GB Due To iOS 8 Update Issues
- G20 Summit in Nov: No Consensus to Bar Russia, Putin Open to Attend in Australia