Melbourne gym and office-retail spaces sold for $9.2M

Written on the 30 January 2019 by Business News Australia

Melbourne gym and office-retail spaces sold for $9.2M

Real estate agent CBRE has negotiated two major property sales for a total of $9.15 million in Melbourne's CBD and Docklands.

A ground floor gym in the Melbourne CBD was sold for $5.05 million, representing a $1 million premium on its reserve price after a competitive auction between six bidders.

The 369sqm investment at Shop 1, 199 William Street fielded a total of 47 bids before it sold under the hammer to an international investor at a 4.72% yield. The final sale price reflected a strong building rate of $13,686 per sqm.

CBRE's Melbourne City Sales team, comprising Max Ruttner, Alex Brierley and Leon Ma, handled the marketing campaign on behalf of Melbourne-based developer Hengyi.

Ruttner claims the result demonstrates the pent-up demand from local and international investors wanting to secure CBD leased investments.

"It was clear the registered parties were keen to capitalise on the anticipated growth for the western end of the CBD," Ruttner says. 

"The auction price quickly escalated from $3 million to $3.7 million within the first few bids and eventually sold to the Chinese investor for $1.15 million over our vendor's reserve."

Elsewhere in Melbourne, two levels of strata office/retail space in Docklands' Waterfront City were sold for $4.1 million.

Located at 116 Newquay Promenade, Docklands, the 937sqm property features floor to ceiling windows and was sold with vacant possession.

CBRE's Ashley McIntyre and Leon Ma, together with Paul Sutherland and Paul Farrelly of Sutherland Farrelly, sold the property on behalf of the private vendor to a domestic investor.

"We received interest from a wide variety of users, including hospitality, catering, sporting and tourism operators, and conducted more than 25 inspections throughout the campaign," says McIntyre.

Ma highlights the property's location was a key selling factor.

"Offering spectacular views over Melbourne's harbour, the property is surrounded by upwards of 10,000 local residents, world class hotels, and is only 240m from the District Docklands, which is currently undergoing a $150 million redevelopment," says Ma.

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