Melbourne, 16 December 2015 - A classically designed Victorian-era freehold building has sold for the first time in almost 45 years, in a deal valued at $10.8 million.
The five-level freestanding building, located at 8 Drewery Place, sits on a prominent corner position with three street frontages. It formerly housed Sniders and Abrahams cigar manufacturing factory dating back to 1890. This part of Melbourne saw a concentration of tobacco oriented firms that established large factories and warehouses in the late Victorian-era and Edwardian period.
CBRE Melbourne City Sales team of Josh Rutman, Mark Wizel, Paul Tzamalis and Tom Tuxworth negotiated the sale, which transacted at a public auction in front of a crowd of over 100 people.
The sale represented a yield of 4% - a strong result which Mr Rutman linked to the rarity of the offering, with most other buildings in the direct proximity having already been converted to residential apartments.
“Strong interest was received for the property from a range of local and offshore-based investors, with over 45 bids received from five parties at auction. This interest was underpinned by solid investor demand for well-located CBD freehold assets.”
The property is located just behind Swanston Street, within what is fast becoming known as the “Golden Triangle” of city retail – between Melbourne Central, Emporium and the QV Complex. Today the ornate building houses a range of retail and office tenants and has seen a dramatic increase in pedestrian activity as the CBD has grown its permanent residential, student and tourist populations.
“The location within the northern precinct of the CBD has seen a remarkable transformation since the completion of the Emporium shopping centre and the seven day foot traffic which is driven in large part by the expansion of RMIT, presents a terrific opportunity to transform and improve the building in years to come,” Mr Wizel added. For Australian/international news or global stories, follow us on Twitter. 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. About CBRE Group, Inc.
