Melbourne CBD home of Europcar leads flurry of strata sales

Owner-occupiers and investors are fighting to get their hands on CBD strata assets in the final weeks of 2021.

Colliers’ Melbourne City Sales team has sold four strata properties in the CBD in the past week for a combined $14,635,000, with under-bidding interests representing some $30.2million in unplaced capital.

“As we enter the final month of 2021, it is pleasing to see owner-occupiers and investors actively competing for CBD strata opportunities,” Colliers’ Anthony Kirwan said. “Recent sales in quick succession demonstrate the strength and appetite from buyers for prime commercial investments in Melbourne’s CBD.”

The most notable transaction this week was the sale of 89-91 Franklin Street in Melbourne, the home of Europcar in the CBD, to a local investor by Colliers’ Oliver Hay, Anthony Kirwan, George Davies and Leon-Ma.

The high profile property is a strata titled retail asset comprising 201sqm of floor area and 33 car spaces over the ground and lower ground levels. It is currently functioning as a car rental outlet and is leased to Europcar, one of Australia’s leading vehicle rental companies, generating a net income of $478,551 per annum + GST with options up to the year 2036.

Whilst the sale price is undisclosed, it is understood to be well in excess of the quoted price guide of $8.25million.

“This sale represents the second largest CBD strata retail transaction across 2020 and 2021 combined, after the sale of 181 Collins Street, Melbourne (Balenciaga) for $35,000,000,” Mr Kirwan said.

“After generating more than 120 genuine buyer enquiries, Colliers received four initial offers from a mix of local, national and international investors drawn to the offering for its long lease covenant to a reputable tenant.

Mr Hay said: “The property sold well above the vendor’s reserve and with a short 25 day cash settlement.”

Colliers specialised strata sales team has developed a substantial and highly qualified buyer database and continues to transact real estate of this nature at significant premiums.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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