Melbourne's Hawthorn site sells for $17 million on a tight 4% yield

Melbourne's Hawthorn site sells for $17 million on a tight 4% yield
Melbourne's Hawthorn site sells for $17 million on a tight 4% yield

Competition for scarce assets is compressing yields in Melbourne’s inner east, with a Chinese group subsidiary paying $17 million on a tight four percent yield for a property in Hawthorn.

The sale was through an expressions of interest campaign managed by Teska Carson and attracted more than 200 enquiries from local and off-shore investors. Ultimately, it was snapped up by LYZ Property Group.

The 283-285 Burwood Road property comprises 4,509 square metres of building area over two levels on a 2,655 square metre site with Commercial 1 zoning. 

The property is securely leased to Snooze on a 10-year term with seven years remaining, and National Storage on a 15-year term with four years remaining, at a total current net return of $682,660 per annum.

LYZ, known for its high-end apartment projects, including the Elenberg Fraser designed Chiara and Lucia projects in Daly Street, South Yarra, would hold the property as a long-term investment with potential for redevelopment, according to selling agents Tom Maule and Michael Taylor. 

Maule said the property attracted enormous attention from a market starved of opportunities in the early part of the year.

"We had enquiry from more than 200 parties including privates, developers, high net-worths, local and off-shore. Given the lease profile, this was a pure investment play and as such has sold on a sharp yield which is in record territory for this type of property in Hawthorn,’’ Maule said.

"We have plenty of enquiry but while the investors are still out there owners have not been out there in the same numbers."

LYZ Property Group parent, Hengmao Group, has been involved in several developments in China totalling more than two million square meters of residential property and mixed-use projects including Hengmao Metropolis a 500,000 square metre community living complex including a 100,000 square metre shopping mall.

The vendor was a local private investor.

 

Tags: 
Melbourne Commercial Sale

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