A popular café on Flinders Lane in the Melbourne CBD has sold this week on a sub 3.2% yield and a building rate over $35,000/sqm. Lau’s Café at 535 Flinders Lane, a bustling lunch spot for Melbourne CBD construction workers, was sold almost 2 weeks prior to the scheduled auction date.
With only 6 months remaining on the lease, Stonebridge agents Dylan Kilner & Max Warren noted the importance of highlighting to buyers the current resurgence of the Melbourne CBD and long-term growth of the northern end.
“It was a case of selling the longer-term vision for this pocket of the Melbourne CBD highlighting the over $190,000,000 in hotel development within the immediate area” said Mr Warren.
The transaction is located next door the to the new ‘Ormond Melbourne’ hotel development at 540 Flinders Street which will consist of over 537 rooms.
“This sale is 100bps sharper than the last sales of publicly marketed shops in the building and highlights the resurgence of confidence in the Melbourne CBD over the past 6 months” said Mr Kilner.
|Recent Melbourne CBD Shop Sale Results|
|Property Address||Yield||Building Rate|
|535 Flinders Lane, Melbourne||3.2%||$35,416|
|18 Katherine Place, Melbourne||4.6%||$27,459|
|26 Katherine Place, Melbourne||4.8%||$30,120|
|16 Katherine Place, Melbourne||4.6%||$14, 954|
For further information please contact:
Dylan Kilner | 0459 396 341 | DKilner@stonebridge.com.au
Max Warren | 0488 296 892 | MWarren@stonebridge.com.au