Commercial hammer prices
How much a development site in South Melbourne’s famous Dorcas Street (formerly the home to Channel 7’s television studios) has sold for. This is or more than 33% above the reserve following a hotly contested auction conducted by Savills Australia. The 244-246 Dorcas Street property, comprising a vacant office/warehouse on an 826-square-metre site, was finally knocked down to a local developer after 153 bids from seven potential purchasers in a crowd of around 100 people. The marketing campaign was led by Savills directors Clinton Baxter and Nick Peden.
The price paid for a 1,001-square-metre vacant block in Keilor Park. The 38 Concorde Drive site, located within the Translink Business Park, was acquired by Bovino Investments Pty Ltd. Linsday Davidson negotiated the deal on behalf of vendor Mobile Radio Services Pty Ltd, in his first deal for CBRE. Davidson says location was a key factor in the sale. The buyer is a local property developer, who owns a number of properties in the area. He has plans to build a shed on the site around 750 square metres. Keilor Park is located approximately 17 kilometres north-west of the Melbourne CBD.
How much a private investor has paid for a ground-floor retail tenancy at 565 Flinders Street, reflecting a yield of 5.85%. The 50.6-square-metre store features a 10-metre street frontage and is fully leased to PeterPans Adventure Travel on a six-year lease term, with a five-year option. The lease generates an annual net income of $41,046 plus GST and outgoings. CBRE’s Josh Rutman, Ed Wright and Max Cookes led the off-market sales campaign. The property is surrounded by national retail tenants including Nando’s, Domino’s Pizza, Michel’s Patisserie and 7-Eleven.
The price paid for a 1913-built Art Nouveau backpackers' hostel in Melbourne with an expected yield of more than 8%. Previously known as the Sir Charles Hotham Hotel and the Hotham Private Hotel, the building on the corner of Flinders Street and Spencer Street was first listed for sale by the vendor in June 2010. The property, 2-8 Spencer Street and 566-580 Flinders Street, last sold in 2006 to Australian Budget Accommodation Group for $6.15 million when offloaded by the Ivany family. Current tenants All Nations Backpackers Hostel have a lease until 2018, after which the marketing suggests there will be redevelopment potential for the site. The current net annual rental is $885,586.
The price paid for the Kangaroo Valley Bowling and Recreation Club in southern New South Wales, sold by Ray White Commercial Shoalhaven. The property at 10 Marshall Street, Kangaroo Valley, was sold to an investment company by Ray White Commercial Shoalhaven’s Scott Baxter and David Thorpe on behalf of the vendor, the Nowra Bowling Club. Thorpe said the new owners had yet to disclose their plans for the Kangaroo Valley club, which ceased operations in late January. The club is centrally located in the Kangaroo Valley village and offered spectacular views of the Southern Highlands mountain ranges. The former club is situated on a 1.44-hectare block and the site includes a club house as well as a three-bedroom brick cottage, which is currently rented for $250 per week.