CARLTON FREEHOLD SOLD ON SHARP YIELD OF 4.1PC
Posted on 18 September 2014
TRIPLE storey commercial office building at Carlton in Melbourne's fringe has sold under the hammer by Vinci Carbone for $11.4 million on a sharp yield of 4.1%.
Vinci Carbone's Joseph Carbone and Frank Vinci negotiated the sale of property at 21-25 Bouverie St Carlton.
Carbone said the sale price reflected a land rate of $13,850 per sqm, well above the vendor’s reserve price expectations.
"Six bidders amongst a crowd of over 100 competed aggressively for the property which resulted in an Asian investor securing the property.
"This auction result clearly demonstrated the high demand from the local and overseas sector for prime city based property with the under-bidder(s) being locally based investors.
"With over 100 enquires received throughout the campaign, it is evident investors and developers, whether locally based or offshore, are willing to compete for prime inner city property. The sale price reflected a significant premium above the reserve price," he added.
The three-level building comprises 2,247 sqm of space on a 823 sqm site. It is fully leased to Grimshaw Architects, on an annual income of $468,000 with the current lease term expiring August 2019.
The site is currently zoned mixed use, although it is pending rezoning to Capital City Zone.