Cashed up Melbourne buyers show their hand in Church Street Brighton auction
The Westpac building in Brighton’s Church Street retail hub has sold at auction for $6,900,000.
CBRE’s Melbourne Strip Retail Investments team of Rorey James, Sandro Peluso and JJ Heng negotiated the sale of the 92-94 Church Street property in conjunction with Iles Real Estate’s Matthew Iles and Richard Seeley.
“The property attracted strong interest from high net worth investors and groups with pre-approved finance, both domestic and international. We had 16 qualified groups attend the auction with an intention to bid and three competed for the asset following a very strong opening offer of $5.75m,” Mr James said.
The property was eventually knocked down to a local Melbourne family in front of 150 attendees.
The final sale price translated to a tight yield of 3.6%, a building rate of $20,000 per sqm and a land rate of $22,115/sqm – evidence of strong buyer demand for these premium assets.
“The area’s affluent demographic, low vacancy and access to major council carparking and supermarkets at both ends of the street are qualities that attract investors to Church Street Brighton,” Mr James said.
Mr Peluso also noted that recent Melbourne retail transactions had demonstrated the “flight to quality” mindset of investors.
“Buyers are clearly showing a stronger appetite for high quality retail assets backed by reputable, national tenants, given the recent weakness in retail sales data,” Mr Peluso said.
The sale of Westpac Brighton follows other recent sales in the past 12 months in the strip including the Sportsgirl building which CBRE sold for $8.2m, 127 Church Street ($2.055m), 17 Church Street ($4.35m) and 67 Church Street ($2.41m).