An International Chinese investor has made a cash purchase of a freehold Elizabeth Street building sold after 45 years of ownership. CBRE Melbourne City Sales team - Alex Brierley, Nathan Mufale and JJ Heng transacted the property. 

423-425 Elizabeth Street, Melbourne comprised of a vacant 315 square metre dual fronted character building with a 188 square metre landholding.

The competitive on market campaign generated 6 formal positions with the building transacting on an unconditional basis and 90-day settlement.

The result represented a strong land rate of more than $58,000/sqm and building rate of more than $35,000/sqm in excess of the vendors expectations.

“Given the property was offered with vacant possession, sourcing a diverse pool of cash buyers who were not reliant on bank funding was critical in generating competitive bidding in the process and achieving a premium outcome for our client.” Mr Brierley said.

“The sale follows a strong run of transactions marking CBRE’s fifth freehold building sale in the Melbourne CBD within the past 6 months.” Mr Brierley added.

The two-level classical freehold building at 51 Bourke Street sold on a 2.85% yield. This was followed by the three-level commercial building at 270 Queen Street, Melbourne and most recently a two-level vacant warehouse building at 620 Little Bourke Street, Melbourne in July.

“These transactions demonstrate the long term confidence investors have for the Melbourne CBD and in particular well-located main street assets that have been held by some families for generations.” Mr Mufale said.

“Following Melbourne’s extended lockdown period in 2020, the severe lack of purchasing opportunities is resulting in pent up demand from opportunity starved investors taking a long-term view on the Melbourne CBD.” Mr Mufale added.

To request a sales analysis please email either of the selling agents via the below contact details.