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.