CBD RETAIL BUILDING FETCHES $9.3M
10 September 2015,
A BRISBANE CBD fully-leased freehold investment property opposite the Wintergarden Centre has sold for $9.3 million.
A private investor purchased the Elizabeth Street retail building at the Ray White Commercial Investment auction, sold on behalf of developer DeMartini Fletcher for a yield of 4.95 per cent.
Ray White Commercial Queensland director of sales John Dwyer says the property attracted a tremendous response with close to 100 enquiries.
He says the auction was competitive with six registered bidders vying for the building, which produces a net rental income of approximately $460,525 per annum.
"What was most noteworthy was the depth and geographical spread of that enquiry with strong interest from Asian buyers, as well as Sydney-based investors now looking to Brisbane as their local market is so hot," Dwyer says.
"Bidding at what was an exciting auction conducted by RWQ chief auctioneer Philip Parker started at $5 million and there were more than 30 bids before the property was sold under the hammer to a local investor for $9.3 million.
"There was intense competition in the room with the property fought out eventually by the local bidder and Chinese interests. The eventual price was well above the reserve."
Dwyer facilitated the sale of three retail buildings in the CBD this year, and says it demonstrates a strong demand for tenanted property in the city.
Recent sales include 105 Albert Street for $4.83 million and 201 Elizabeth Street for $5.65 million.
"From what we are seeing, people who are selling their properties in the Brisbane CBD should be considering a formal marketing campaign to take advantage of the increased activity," he says.