Savills secures land value record for Heidelberg

A Malaysian Investor has paid $5 million on a tight 4.86 percent yield for a Burgundy Street, Heidelberg investment property with development upside.

The Savills deal established a new land value record for the area of $11,655 a square metre.

The new single storey, 420 square metre retail building in the heart of the Burgundy Street retail precinct, was sold subject to a new lease to Chemist Warehouse returning $243,101 per annum.

There are plans and a permit for the construction of 16 apartments over six levels above.

Savills’ Director CBD & Metropolitan Sales, Nick Peden, who brokered the 156 Burgundy Street deal with Jesse Radisich, said, with foundations already in place to support the approved project, the new development was ready to go. 

"This was truly a rare opportunity with income from a blue chip tenant during construction.

Heidelberg, within easy reach of Melbourne’s CBD, has become increasingly popular over recent years with developers selling up to 90 percent of apartment projects before and during construction.