CHINESE property developer Hengyi has sold the home of a popular Melbourne café for $4.71 million marking the largest ground floor shop sale in the CBD for 2016.
The 518 Little Bourke Street property, which is leased to Little Billy Café on a 10-year term, forms part of Hengyi's William Court portfolio - listed for sale earlier this year comprising eight retail shops and two offices.
CBRE's Tom Tuxworth, Paul Tzamalis, Nick Lower and Josh Rutman negotiated the sale on behalf of Hengyi to a Melbourne doctor and his family via a strongly contested expression of interest campaign.
"With more than 130 enquiries and six offers received, the strong level of interest shown in this property highlights the continued demand for income producing assets and at this lucrative sub $5 million price point," Tzamalis explains.
"With a 10-year lease in place, this property represents an attractive opportunity to acquire a secure retail asset with immediate income."
The property sold for a building rate of $14,125 per square metre reflecting a yield of sub 5.0%.
Tzamalis said the sale also highlighted the recent upturn in SMSF investing.
"The purchaser leveraged off his SMSF together with other family members to secure this asset, which is becoming a more widespread trend given the recent legislation updates from the government on contributions," says Tzamalis.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support