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VINCI CARBONE'S ELEVEN

Posted on 22 September 2009

An office building in Prahran, Victoria has been sold at auction, the eleventh sold by agents of Vinci Carbone over the past two weeks. The modern, two-level office building, situated at 8-19 Grattan Street, Prahran, was purchased by East Melbourne accountant Joseph Chahin on a yield of 5.88%. Mr Chahin is understood to have been active in the development of inner city sites for the last 15 years, tending to concentrate on speculative transactions, though his focus since early 2009 is understood to have changed to larger inner city passive investment holdings that present medium term development potential. The $4.55 million sale of the 1312 sqm building on a 991 sqm site brings the total value of properties sold by Vinci Carbone over the past fortnight to $19.25 million. Over the past two weeks a total of 14 properties were taken to auction by Vinci Carbone, including the Mario Salvo portfolio, with 11 of the properties selling under the hammer and the remainder being currently under offer. The average yield across the investment properties was 5.38%, and the strongest yield was achieved by a shop at 151 Martin Street, Brighton, which was sold for a price of $1.265 million, reflecting a yield of 3.32%, The highest yield was achieved by the buyer of an older style, two-level building at 245-249 Peel Street, North Melbourne, which sold for $1.625 million, reflecting a yield of 6.2%. Vinci Carbone director, Frank Vinci, said that given these results and the level of enquiry that he received, he is very confident about the depth of the property market, in particular for investment and development properties. "It provides incentive to put properties on the market when you see results like these," said Mr Vinci.