Sold: Greek precinct building sells for $10.15m

Wednesday 7 March 2018

Written by Simon Johanson, The Age

A three-storey Victorian-era building in the heart of Melbourne’s Lonsdale Street Greek precinct has sold for $10.15 million.

Built in 1891, the brick structure at 185-187 Lonsdale Street was leased to International Cakes and sold on a sharp 3.94 per cent yield.

A corner building at 185-187 Lonsdale Street has sold.

A corner building at 185-187 Lonsdale Street has sold.

Savills Australia’s Nick Peden, Clinton Baxter and Benson Zhou, in conjunction with Burgess Rawson’s Jamie Perlinger, brokered the deal on behalf of the building’s Australian-Greek owners at a rate of $53,989 per square metre.
Mr Peden said it was purchased by a Chinese-based investor.
A scarcity of properties on the market in the central city was creating pent-up demand and strong sale results, setting a precedent for the rest of the year, Mr Peden said.

The corner structure was designated in Melbourne’s planning scheme as a heritage precinct contributory building. It was previously put up for sale in August 2016 with an asking price of $9.9 million and subsequently withdrawn.

The sale follows another city property owner cashing out by offloading a three-storey building at 185-187 Bourke Street in an off-market transaction for $9.8 million.

That property was leased to Japanese cosmetics store Hello Day, but the remainder of the building needed significant capital investment.

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