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News release

Melbourne

Massive turnout for Degraves Street auction

Fully leased retail asset sold under the hammer on Melbourne's busiest laneway


​Drawing a crowd in excess of 150 people, a piece of Melbourne’s most iconic laneway, a strata titled retail unit at 16 Degraves Street, was sold under the hammer for $3.15 million reflecting a low net yield of 4.89% and circa $40,000 per square metre of building area.

In the first on-market campaign Degraves Street has seen since February 2011, JLL’s Stuart Taylor and Mathew George sold the property to a private investor via public auction on behalf of Ferrier Hodgson as Agents for the Mortgagee.

JLL’s Executive, Sales and Investments, Mr Taylor said, “The property generated exceptionally strong interest with over 100 enquiries received and in excess of 40 contracts distributed.

“The strong competition reflects the strength of the private investor market for well-located retail property.”

JLL’s Vice President, Hotels and Hospitality, Mathew George said, “Degraves Street currently has zero vacancies and is one of Melbourne’s pre-eminent retailing positions for the food and beverage industry, providing great security for the successful purchaser.”

Located on Melbourne’s busiest laneway, in the heart of the CBD shopping precinct, the licenced café/bar is currently leased to Il Tempo on a new five (5) year term with three (3) further five (5) year options. The property returns a current income of $155,000 per annum plus GST with fixed annual increases of 4%.