Melbourne private investor pays $1.65 million for premises of Fred Perry on sought-after Little Collins Street
A Melbourne private investor has paid $1.65 million on a passing yield of 5.67% for the ground-floor shop that houses the premises of Fred Perry men’s fashion store on Little Collins Street in the Melbourne CBD.
The 32.5-square-metre strata retail premises at 188 Little Collins Street sets a new record, according to the selling agents Nick Peden and Clinton Baxter from Savills, for the highest rate per square metre – $50,769 per square metre – for a CBD retail property outside of Swanston Street.
The brand dates back to the late 1940s, when former Austrian footballer Tibby Wegner approached three-time Wimbledon champion Fred Perry with an idea to use his name to sell sportswear.
They started off modestly with the very first sports sweatband, quickly adopted by tennis players across the courts of Britain. In 1952 the pair launched what was to be Fred Perry's most famous garment: a slim-fit cotton pique shirt with laurel wreath embroidery.
The selling agents said the property attracted a great deal of interest from investors keen to take advantage of the secure lease profile and prime CBD location.
There was competition for the premises from both local and offshore investors, which “demonstrated confidence in the CBD retail market and a desire to secure good-quality CBD property," says Peden.
"The property offered an excellent opportunity to acquire an extremely well located and affordable retail investment property within the Melbourne CBD.
"With the low interest rate environment and prospects for strong growth due to the CBD’s rapidly rising population, we were able to sell the property within 14 days of placing it on the market, at the vendor’s price, with minimal marketing expenditure," says Peden.
This sale represents Savills ninth CBD sale in the past few months.
Space in Little Collins Street comes at a premium. Last week Savills retail director Michael Di Carlo alongside colleague Jeremy Marmur negotiated a new lease for food and beverage retailerMadam Squint, at 353 Little Collins Street property at more than $2,000 per square metre net for a 47-square-metre, ground-floor retail premises on a three-year term.
Madam Squint is a new concept in Asian salad and sandwich bars specialising in rice burgers.
