Melbourne Theosophical Society Sells Prime CBD Site

31 July 2017

A Chinese investor has purchased 124-130 Russell Street in Melbourne’s CBD, at the conclusion of a hotly contested sale campaign for the property best known as the home of the Melbourne Theosophical Society (MTS).

Savills Melbourne agent Nick Peden who sold the property with colleagues Clinton Baxter and Benson Zhou said that the property attracted an enormous level of investor and developer demand, with buyers flying in from interstate, China and South-East Asia to view the property. The transaction manager was David O’Callaghan of O’Callaghan Commercial.

“Many local buyers were extremely keen to purchase this property, but they simply couldn’t match the fire-power of cashed-up private investors from Asia with the leading contenders in this instance being from Malaysia and China.”

“We received intense interest in this asset from many potential buyers with the key attractions being the property’s super-prime position directly opposite the QT Hotel, its wide retail exposure, proximity to Melbourne’s retail core, and various opportunities to add-value once MTS relocates from the premises.”

“Investors recognise that strategic east-end CBD properties such as this are the best placed to benefit from the apartment and population boom currently occurring in central Melbourne, leading to greater retail spending throughout the city in coming years.”

"It came as no surprise that numerous buyers were desperate to purchase this property from the moment it hit the market and that it sold at an exceptional rate per square metre of land,’’ Mr Peden said.

The 1654 square metre, five level, retail and office building sits on a 519 square metre site, zoned Capital City, with extensive frontages to Russell Street and Melbourne Place of more than 20 metres each.

The building was fully leased, with short-term tenancies in place. The passing net income is approximately $159,566 per annum.

Mr Baxter said that the deal was concluded just days after the close of Expressions of Interest for the property, with most interested parties submitting unconditional offers for the asset.

“Melbourne CBD’s population growth along with the trend of major international retailers entering the Melbourne market have both enhanced the CBD's reputation as an international shopping destination and driven rising retail spending and that is not lost on savvy purchasers,’’ Mr Baxter said.
 
Mr Baxter said that pent-up demand for CBD properties in the $10-$30 million price bracket is quite pronounced with a tsunami of capital from Asia endeavouring to secure prime properties throughout the Melbourne commercial market.

Click here to learn more about Savills CBD & Metropolitan Sales VIC

 
 

Key Contacts

Nick Peden

Nick Peden

Director
CBD and Metropolitan Sales

Savills Melbourne (150 Collins Street)

+61 (0) 3 8686 8011

 

Clinton Baxter

Clinton Baxter

State Director - VIC
CBD and Metropolitan Sales

Savills Melbourne (150 Collins Street)

+61 (0) 3 8686 8021