Heritage listed Camberwell Junction retail site sold for $3.6 million
A heritage listed retail property in Melbourne's Camberwell Junction has sold under the hammer for 30% above the reserve price.
The retail property, on the corner of Burke and Riversdale Road, was sold to local private investor for $3.6 million, on a tight yield of 4.56%.
The hotly contested auction drew more than 70 bids, with several serious bidders, said Savills selling agents Nick Peden and Clinton Baxter.
The 250 square metre property is leased to restaurant Meat & Wine Co and is subject to a 10 year lease at a current net rental of $164,117 per annum. The lease has fixed annual increases of 4%.
Mr Peden said the sale price was a signal that the market was very strong, buoyed by the low interest rate environment.
While Mr Baxter added that both the record low yield of 4.5% and the building rate of $14,400 a square metre were signs that good quality retail investments were in high demand and buyers were confident of the market outlook.
The 1885-built church-like structure is the former English, Scottish and Australian Bank. The brick building is somewhat awkwardly wedged in to the newly built Aerial residential development, retained as a concession to the rich heritage of the area.
It was the subject of a $500,000 renewal in 2009 during the construction of Aerial.
In 2007 planning minister Justin Madden intervened in the VCAT case surrounding the $150 million development to push it through following strong community opposition though it still suffered from construction delays.
It was designed in the picturesque Gothic style by architects William Wardell and W L Vernon. Wardell was responsible for a number of buildings around Melbourne.
According to Heritage Victoria the branch was responsible for facilitating much of the suburban building boom in the area after the extension of the railway line from Hawthorn in 1882.
The sale includes nine secure car parks.
The Aerial development, by Queensland developer FKP, has 144 apartments and nine shops.