Southbank retail complex sells for $3.4 million at Savills auction

A fully leased retail complex in Melbourne’s Southbank has been snapped up by a local investor for $3.4 million, above the $2.8 million expectations, at Savills auction.

At the transaction price, the yield works out to be a sharp 4.94 percent and underlines the robust demand for a well-located retail property.

The 152 Sturt Street property comprises six shops totalling 1,080 square metres of retail space including a new fit-out. 

The property was sold fully leased to the City of Melbourne at a net annual rental of $168,105 on a five-year term with options.

The selling agents were Clinton Baxter, Jesse Radisich and Benson Zhou of Savills.

Baxter said strong bidding from the start had resulted in a fast-moving auction and a great result for the vendor.  

“This was an outstanding result for a property which offered all of the key attributes of a blue chip investment including a government tenancy, a long lease, the potential for very strong rental growth as the area continues to develop, and significant depreciation benefits,” said Baxter.

The property comprises the ground floor of the hugely successful 317 apartment Guild development with all apartments selling prior to the building’s completion.

The vendor was the developer behind the Guild project.