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  • Current strong retail environment makes for an ideal time to sell

Current strong retail environment makes for an ideal time to sell

1 December 2015
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​Melbourne, 01 December 2015 – A fully leased strata retail investment in the Northland Homemaker Centre has been snapped up by a private local investor for $5.12 million.

The 1,080sqm retail suite was sold with a lease to boutique French provincial furniture retailer Maison Est.

CBRE’s Josh Twelftree, Rorey James and Ryan Arrowsmith negotiated the sale on behalf of a private local investor, who had deemed the current strong retail environment as the ideal time to sell.

Despite the strata nature of the asset providing some challenges, Mr Twelftree said the auction received strong interest from a range of local and offshore investors.

“The bidding opened up at $4 million and after 38 bids from four unique investors, including a Mainland Chinese group who was the under bidder, it was eventually sold for $5.12 million.”

The transaction was equivalent to a building rate of $4,741 per sqm and yield of just over 6% - which Mr James said was a strong result given the property’s strata titled nature.

“The result is a good indication of the current buyer appetite for income producing retail assets, regardless of location. The record low interest rate environment, together with a lack of supply of these single tenanted retail investment properties, continues to attract an array of local and offshore investors.”

CBRE’s Large Format Retail team negotiated the last three leasing deals within Northland Homemaker Centre and has attributed their success to educating retailers about the location and in particular the gentrification of Preston.

“Young professionals are moving into the area, purchasing homes with the view to reallocate funds back into the property by renovating, interior decorating and redesigning the existing landscape of their homes. This trend has seen the area improve as a whole, and the demand for household goods in the area increase,” Mr Arrowsmith added.

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About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.​

 

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