Property developer Jeff Xu of Golden Age Group has sold a portfolio of five CBD strata shops in Melbourne’s Victoria One building for $13.6 million on a 5.5 per cent yield.
The ground and first floor properties, equating to 500sq m of retail space, was sold to to a Melbourne based investor looking to take advantage of the high profile Elizabeth and Franklin street frontages and 643 apartment tower above.
Golden Age Group developed and delivered the 75-storey tower located on the corner of Elizabeth Street and Franklin Street.
The properties are currently leased to established international tenants, returning more than $750,000 per annum.
CBRE’s Nathan Mufale, Mark Wizel, Leon Ma, and Ben McMahon brokered the deal noting the result was unprecedented for strata retail in the Melbourne CBD.
The retail component sold at a benchmark building rate, compared to a similar property handled by CBRE, of $27,230 per square metre Mufale said.
“This marks the third strata retail transaction on Elizabeth Street within the last six weeks showing unquestionable confidence in a precinct which benefits enormously from its close proximity to the Queen Victoria Market, Melbourne University, RMIT, the Royal Melbourne Hospital, and Melbourne Central.”
“The construction of the CBD North and State Library railway stations, currently underway, will only enhance those significant locational attributes,” Mufale said.
Victoria One, designed by Elenberg Fraser and built by Probuild, stands 271 metres tall and features 643 apartments as well as 163 car spaces using Melbourne’s largest internal car-stacking machine.