Pieces of the Melbourne CBD strata retail pie proving popular

The Pie Face premises on Flinders Street, Melbourne - 38 square metre premises - have been sold for $92,105 per square metre.

The $3.5 million sale of Shop 2 at 250 Flinders Street opposite Flinders Street Station was struck on a 4.4% initial yield.

The property is leased to popular retailer Pie Face on a five year lease with further five year option had actually been expected by Colliers International to fetch in excess of $3.5 million.

The 24-hour Pie Face outlet sits on corner of Degraves Street. 

The lease yields $152,987.02 plus GST and outgoings, plus a 4% annual increase.

Shop 1, leased as a travel agency, sold at auction last month for $2.33 million on yield of 3.6%, representing $61,316 a price per square.

Property Observer gleans the 2012 sale price of strata retail space at 97 Swanston Street at a rate per square metre of $184,214 holds the record for a CBD strata-titled shop.

A Vietnamese buying syndicate purchased the shop at an initial 4.7% yield from a syndicate associated with Cedric Fuchs for $2.579 million.

The $184,214 square metre price surpassed the level set by the neighbouring Telstra store in earlier in 2012, when the 65 square metre Telstra store on the corner of Swanston Street and Collins Street was sold by Sydney's Fuchs family for $142,300 per square metre. Cedric Fuchs was one of the founders of Charter Hall.

The Telstra store was bought by South Yarra investor Ken Biddick, a sporting goods wholesaler.