Developer duo sell their South Yarra office on a tight 4 percent yield

Developer couple Lance Chu and Chenghan Tan, who run SC Land, have sold off their South Yarra, Melbourne, headquarters for $9.5 million.

It was on a tight 4 per cent yield.

The 36-40 Toorak Road property, which the couple bought in 2007 for $3.7 million, was redeveloped, according to The Australian Financial Review.

It has a two-storey office on top while leasing out the two ground- floor retail spaces.

The office premises, designed by architects BURO, won the Master Builders Association (Victoria) 2010 Excellence in Construction Award for commercial buildings under $5 million.

The 800 sqm building, which retains its original Victorian heritage facade, sits on a 432 sqm land parcel.

It earns an annual rental income of $383,000.

Jeremy Gruzewski and Ben Baines of Colliers International brokered the deal.

Hong Kong-born Chu and his Singapore-born wife founded SC Land in 2000. They have worked on several high-end apartment and townhouse developments in Melbourne with one of their most recent on the Esplanade in Brighton.