Melbourne, 19 May 2021
A new Burnley land rate record has been site following the hotly contested transaction of a current office site at 182-184 Stawell Street.
CBRE’s David Minty, Nathan Mufale, Alex Brierley and JJ Heng negotiated the sale to a local investor following a competitive Expressions of Interest campaign which generated over 250 enquires and attracted 12 formal offers.
The sale price eclipses the previous land rate record for 173-177 Barkly Avenue – a property purchased by Salta Group in 2019 to undertake a $50m office tower development.
The 182-184 Stawell Street deal was struck on an unconditional basis and with a short settlement.
The 2,311sqm landholding comprises a two-level, 1,750sqm office building with 40 car spaces. It is partially tenanted, generating a current annual income of more than $412,000, and provides significant value-add potential as well as considerable scope for future development.
CBRE’s Mr Minty said the campaign had generated strong interest from prominent domestic and international owner occupiers, astute value-add investors, developers and land bankers.
“Given the property was offered with short term income, sourcing a diverse pool of high net worth cash buyers who were not reliant on bank funding was critical in generating competitive bidding and achieving a premium outcome for our client,” Mr Minty said.
“With owner occupiers incredibly active in the market at present, a lack of sizeable, well-located offerings has led to a marked increase in prices for commercially zoned land in Melbourne’s inner- city markets.
“Four to five years ago, land prices in Cremorne were around the $4,000/sqm mark, however we’re now consistently achieving rates of $12,000/sqm to $13,000/sqm. This is having a flow on effect in surrounding precincts such as Richmond and Burnley.”
CBRE’s Mr Brierley noted that the buyer competition for 182-184 Stawell Street, involving owner occupiers, high net worth investors and commercial developers, had resulted in a sale price almost $2 million over initial expectations.
“The campaign has unearthed over $150million of unsatisfied capital looking to invest in Melbourne’s city fringe market after 11 parties missed out on the opportunity,” Mr Brierley said.