A flaghip South Yarra icon has sold under the hammer for $16.2 million at one of the most anticipated commercial retail auctions in Melbourne this year.
The National Australia Bank South Yarra branch, located at the intersection of Melbourne’s two best retail high streets Toorak Road and Chapel Street, has sold on a ultra-low yield of 2.53% and a record land rate of $43,400/sqm – representing one of the highest land rates for a freestanding retail investment outside of the Melbourne CBD.
The exclusive selling agents from Colliers, Matt Stagg, Tim McIntosh, Daniel Wolman and Leon Ma received over 200 enquiries from local and offshore investors, high profile retailers and developers throughout the campaign.
Matt Stagg said “We knew this was going to be one of the most sought-after commercial auctions in Melbourne this year, as flagship buildings of this nature in iconic locations are prized investments by virtue of their irreplaceable location.”
The bidding started at $14.5 million with four bidding parties, both local and offshore, fighting over the exceptional investment opportunity. After 40 bids, the property was sold under the hammer to a local private investor for $16.2 million, representing an ultra-low yield of 2.53%.
Tim McIntosh said “Ultra-defensive freestanding retail investments anchored by ASX-listed covenants and boasting a long lease continue to show their resilience in any market cycle.”
“This result follows our recent sale of Dan Murphy’s and Commonwealth Bank on Glenferrie Road in Malvern, trading on a low-blended yield of 3.88%, representing a combined sale price of $29 million,” Mr McIntosh added.
National Australian Bank has occupied the corner South Yarra building for over 70-years as one of their flagship branches and recently signed on a new 5-year term following a major $1.5 million refurbishment.