A Chinese buyer has made their first entry into WA’s property market, paying $4.8 million for the CBD building leased to long-standing Perth restaurant Fast Eddys.
The sale of the venue for the well-known café at 454 Murray Street, generated strong interest with 51 enquiries received during the marketing campaign, which was run by Colliers International’s Shane Isaacs.
The freehold sale included the single level restaurant and its alfresco area, which occupy a 465sqm site on the corner of Milligan and Murray streets.
Mr Isaacs said the sale demonstrated the strong demand from local and offshore investors for leased buildings in Perth’s CBD.
“The sale represented a yield of 7.5 per cent and a land value over $10,000 per/sqm,” he said.
“The absence of heritage considerations and a site with future development prospects in a reinvigorated part of the CBD made the property of particular interest to developers looking for holding income.”
Fast Eddys has occupied the building since the early 1990s and its tenancy runs until June 2019 and includes three six-year renewal options.
“A plot ratio of 5:1 and a direct link to Perth Arena and Perth City Link via the Milligan Street extension, also generated interest in the property’s longer-term development prospects,” Mr Isaacs said.
“Offshore investors have been behind a number of significant CBD sales during the past year but as this transaction shows, their mandates also include smaller acquisitions in Perth’s commercial property market.”