A local family has purchased a high profile 1,039 square metre commercial site at 5-7 Guest Street in affluent Hawthorn for $8,350,000.

The property is currently occupied by major Australian market research firm DMB Consultants Pty Ltd, under a five-and-a-half-year lease with an additional 5-year option to renew.

At a glance:

• Property in prestigious Melbourne suburb of Hawthorn sells for $8,350,000 to local buyer
• Lease provides a net rental income of $362,000 per annum
• Sale price represents building rate of $8,800 per square metre

The lease provides a net rental income of $362,000 per annum, including 3.5 per cent fixed annual rent reviews with outgoings. 

GormanKelly agents Sam Torrance and Nick Breheny negotiated the deal in conjunction with Clinton Baxter and Dorothy He of Savills Melbourne, following a private placement sale process that received strong interest from local and Asian investors, resulting in a tight yield of 4.33 per cent and a building rate of $8,800 per square metre. 

Mr Baxter said multiple buyers were drawn to the property’s blue chip location and strong tenancy, in addition to the building’s exceptional presentation. 

5-7 Guest Street comprises a freestanding, recently refurbished two-level office building with new glass partitioned boardrooms and meeting rooms, modern open plan co-working areas, kitchen and bathrooms, as well as 19 secure car parking bays. 

“The property is zoned for Commercial 1, with a demolition provision available from March 2024, allowing for multiple redevelopment options in future,” said Mr Torrance.

“We generated a huge amount of interest from Chinese buyers all keen to secure an asset in Hawthorn, but ultimately they were out-maneuvered by a strong local family with other nearby assets seeking to expand their portfolio.” 

Clinton Baxter of Savilles said the opportunity to secure a premium office building in this location was extremely rare.

“We anticipated a great deal of interest and are proud to have secured such a strong result for the client,” he said.

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