Not just another brick in the wall

Sunday 31 July 2016

Written by The Australian Jewish News

Burgess Rawson is currently marketing an unusual offering as part of its latest Portfolio Auction, due to be held at Crown Casino on Wednesday 5 August from 11am.

“Affectionately known simply as ‘the wall’, Lot 7, 238 Flinders Street is precisely that,” said Burgess Rawson director Graeme Watson. “The property presents in a monetary sense an amazingly affordable CBD property and its unusual nature is predicted to provide a higher return than any other capital city property investment.”

A separate and independent freehold title without the complications of being part of an owner corporation, the 117-square-metre wall area overlooks the intersection of Swanston and Flinders streets with neighbours including Young & Jacksons Hotel, St Paul’s Cathedral, Flinders Street Railway Station and Federation Square.

The property is tenanted by Digital Outdoor Media (VIC) Pty Ltd, and is subject to a new 15-year lease from February this year, with renewal options through to 2039. The wall provides a rental income over the
period of the tenancy currently at $357,000 per annum with all outgoings paid by the tenant. Rental under a ‘ratchet clause’ is increased every year by CPI and every five years at market.

The property is expected to sell for a price in excess of $3 million, providing the eventual new owner with a yield far higher than any other CBD property investment is currently believed to be achieving.