Investors vie for Bourke Street buildings
Two city buildings just off Melbourne’s Bourke Street Mall have sold for a combined $11.2 million in back-to-back auctions.
Sold by the same vendors, both buildings changed hands for the first time in 40 years to investors willing to pay sharp yields of around 3 per cent.
A four-storey building at 418-420 Bourke Street – occupied by retailer Peter Jackson – was snapped up for $5.57 million after 34 bids from two potential buyers.
It sold on a 2.81 per cent yield at a land rate of $33,155 per square metre.
Next door, a classic two-storey building at 422-424 Bourke Street exchanged for $5.6 million under the hammer following 55 bids from five parties on a 3.01 per cent yield.
The deal valued the land at $31,461 per square metre.
Both properties sold through Colliers International’s Daniel Wolman, Oliver Hay, David Sia and Chris Ling in conjunction with Peter Lane of Lane Commercial Property.
Mr Wolman said the Bourke Street location and high pedestrian traffic sparked serious competition from a diverse group of buyers.
“These auctions represented a once-in-a-lifetime opportunity to acquire one of two stunning trophy assets in the heart of the Melbourne CBD,” he said.
In February a three-storey building leased to Japanese cosmetics store Hello Day at 185-187 Bourke Street, owned by two Sydney-based investors, sold off-market for $9.8 million.
Last year, the Auski-leased building on the corner of Bourke and Hardware Lane sold at auction for $11.57 million on a yield of 2.8 per cent.
