Flagship Retail Icon Sold Under the Hammer $16.2 million by Colliers

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Sep 17, 2022

Flagship Retail Icon Sold Under the Hammer $16.2 million by Colliers

One of the most anticipated commercial retail auctions in Melbourne this year The National Australia Bank South Yarra investment sold on ultra-low yield and record land rate. The retail investment sold and marketed by Colliers, Matt Stagg, Tim McIntosh, Daniel Wolman and Leon Ma, with 200 enquiries from local and offshore investors, high profile retailers and developers throughout the campaign.

The National Australia Bank South Yarra investment sold at Auction by Colliers
The National Australia Bank South Yarra investment sold at Auction by Colliers

A flagship South Yarra icon sold under the hammer for $16.2 million at one of the most anticipated commercial retail auctions in Melbourne this year.

The National Australia Bank South Yarra branch, located at the intersection of Melbourne’s two best retail high streets Toorak Road and Chapel Street, has sold on a ultra-low yield of 2.53% and a record land rate of $43,400/sqm – representing one of the highest land rates for a freestanding retail investment outside of the Melbourne CBD.

The exclusive selling agents from Colliers, Matt Stagg, Tim McIntosh, Daniel Wolman and Leon Ma received over 200 enquiries from local and offshore investors, high profile retailers and developers throughout the campaign.

For further information on the property can be found in the COMMO feature artcile linked here.

Matt Stagg said “We knew this was going to be one of the most sought-after commercial auctions in Melbourne this year, as flagship buildings of this nature in iconic locations are prized investments by virtue of their irreplaceable location.”

The bidding started at $14.5 million with four bidding parties, both local and offshore, fighting over the exceptional investment opportunity. After 40 bids, the property was sold under the hammer to a local private investor for $16.2 million, representing an ultra-low yield of 2.53%.

Tim McIntosh said “Ultra-defensive freestanding retail investments anchored by ASX-listed covenants and boasting a long lease continue to show their resilience in any market cycle.”

“This result follows our recent sale of Dan Murphy’s and Commonwealth Bank on Glenferrie Road in Malvern, trading on a low-blended yield of 3.88%, representing a combined sale price of $29 million,” Mr McIntosh added.

National Australian Bank has occupied the corner South Yarra building for over 70-years as one of their flagship branches and recently signed on a new 5-year term following a major $1.5 million refurbishment.

To request a sales analysis please contact either of the selling agents Colliers, Matt Stagg, Tim McIntosh, Daniel Wolman and Leon Ma, via the below contact details.

Image Below: Flagship South Yarra Icon at the corner of Chapel Street and Toorak Road for sale by Colliers