Chinese buyer snaps up 415 Collins Street for lucky $8,888,888

Chinese buyer snaps up 415 Collins Street for lucky $8,888,888
Jessie RichardsonDecember 7, 2020

A family from Shanghai has paid the lucky sum of $8,888,888 for the Melbourne CBD freehold at 415 Collins Street.

The four level freestanding office and retail building is located near the corner of Collins Street and Market Street.

Fairfax reports that more than 200 people attended the auction at the foot of the heritage listed building, but the bidding came down to two buyers of Chinese origin.

Bidding began at $5 million for the property, which had a sub $10 million price guide and a reserve of $6.3 million.

In total, 12 buyers reportedly made 51 bids. The locally based bidders, who eventually lost out on the property, made a $8,884,000 bid, but auctioneer Philip Kingston urged the bidders to reach $8,888,888 – eight is a traditionally lucky number for some Chinese people.

The winning $8,888,888 bid was made by the Shanghai-based Ry family.

The sale was marketed by CBRE agents Josh Rutman, Mark Wizel and Lewis Tong. Three investors, Phil Mehrtens, Ted Yencken and Wayne Judson, paid $2.28 million for the 750 square metre property in 1999. The three investors are all associated with construction firm Probuild. Mehrtens is the founder, Judson is a former Probuild business partner and Yencken is a director. Previously, the building had sold for $6.2 million 1990.

The partially vacant property sold yesterday at 2.2% yield. The Reserve Bank recently sounded a warning on commercial property investment, saying: "Although the Australian banking system's exposure to the commercial property sector declined following the global financial crisis, and the recent lending has not increased its share of banks' domestic assets, risks in this area appear to be building."

The Sherlock Holmes Inn is currently located in the basement of 415 Collins Street. The heritage listed building, known as as both Rochelle House and Evans house, was constructed in 1929 as a mixed use building for Thomas Evans, a canvas goods retailer. Designed by Hare Alder Peck & Lacey, the building has a distinctive terracotta detailing in the Moderne style.

An office on the building's first level is currently available to lease, at $291 per square metre including all outgoings.

 

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