Increased competition between local and offshore investors for quality CBD retail assets has prompted a hot contest for a prime investment opportunity on the corner of Degraves and Flinders Streets.
Colliers International’s Daniel Wolman, Oliver Hay and Tom Noonan have been appointed to sell 250 Flinders Street, on the corner of bustling Degraves Street, by Expression of Interest closing July 4.
“This is a prime retail investment opportunity offering huge pedestrian traffic exposure on one of Melbourne’s best retail corners,” Mr Hay said.
“It will suit both owner-occupiers and investors and, with its rare location opposite Flinders Street Station and high profile tenant, is generating substantial interest.”
The 38sq m property is leased to popular retailer Pie Face on a five year lease with further five year option. Agents expect the property to fetch in excess of $3.5million.
Mr Wolman said Melbourne’s sub-$20million CBD investment market was experiencing its busiest period of activity since the boom of 2007.
“At the beginning of 2014 we expected to see more buyers entering our market from offshore and as we approach the half-way mark we are already witnessing an outstanding level of interest,” he said. “One of the highlights to date has been a strong showing by local private investors who are competing with offshore for quality assets.
“Local investors have been very active in the market to date this year, but we will also continue to see lots of offshore groups flying into Melbourne in search of quality assets. This ongoing competition will result in a continual compression of yields continuing on in 2014."