Lonsdale Street building marks first Melbourne CBD sale of 2018

09 March 2018

Savills Australia sells historic retail asset to Chinese buyer for $10.15 million

A Lonsdale Street corner block transacting for $10.15 million marks Melbourne’s first CBD deal for 2018, establishing the ongoing strength of the commercial investment market mid-way through Q1.

The historic two-level retail asset at 185-187 Lonsdale Street, which has long been renowned as the home of International Cakes in the city’s Greek precinct, has sold to a Chinese buyer on a sharp yield of 3.94 percent.

Savills Australia’s Nick Peden, Clinton Baxter and Benson Zhou, in conjunction with Burgess Rawson’s Jamie Perlinger, brokered the deal on behalf of the local investor vendor at a rate of $53,989 per sqm.

“The scarcity of Melbourne CBD property on the market is apparent among active buyers and, as a result, there is significant pent-up demand, which is leading to strong sale results and setting the precedent for the rest of the year,” Mr Peden said.

Mr Baxter said more than 100 parties had expressed their interest in the property, and several offers were received.

“We have several disappointed under-bidders who missed out on this opportunity and are keenly awaiting their next opportunity,” he said.

Mr Zhou said the buyer was attracted to the building’s prime CBD location and reliable long-term tenants.

Looking forward, Mr Peden said Savills was anticipating an active 2018 due to increased buyer demand and the upward strength of the CBD market, with ever-increasing population growth, low vacancy rates and increasing rents.

 
 

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