Jeff Xu sells Victoria One portfolio for $13.6 million

Melbourne based property investor Jeff Xu has sold his Victoria One portfolio of five CBD strata retail properties for $13.615 million to a Melbourne based investor.

The 452 Elizabeth Street portfolio sold on a 5.5 per cent yield and at what is thought to be a record building rate of $27,230 a square metre for similar properties.

CBRE Manager, Melbourne City Sales, Nathan Mufale, who brokered the deal with National Director Investments, Mark Wizel, Leon Ma, and Ben McMahon, said the result was unprecedented for strata retail in the Melbourne CBD.

Mr Mufale said that the properties being in a booming education precinct with a strong Asian international student catchment was a key consideration behind the high level of interest the portfolio had attracted.

Confidence in this precinct is clear as this is the third strata retail transaction on Elizabeth Street within the last six weeks.  

The 452 Elizabeth Street portfolio comprises five strata retail spaces covering 500 square metres across ground, first floor and mezzanine spaces.

The portfolio has 50 metres of Elizabeth and Franklin street frontage and is located at the bottom of Golden Age’s 643 apartment tower. 

The properties are leased to established international tenants returning more than $750,000 per annum.

Mr Wizel said significant appreciation in land taxes for freehold assets was another important consideration for investors and that it was "another factor driving the increasing demand for strata retail assets in the CBD."