Offshore Buyer Pays $15m on 4.7% Yield

An offshore buyer has paid $15 million on a sharp 4.7 percent yield for a Hawthorn serviced apartment building as offshore investors continue to figure prominently on the investment front.

According to marketing agents, Savills Julian Heatherich, Nick Peden and Benson Zhou, the expressions of interest campaign for the 85 Camberwell Road property drew multiple bids from offshore, local and interstate investors.

Completed in 2015, the fully leased building comprises 18 full sized luxury serviced and fully-furnished apartments providing 28 keys, plus retail shops over three levels and 22 car spaces on a 950 square metre corner site.

The property is fully leased to two tenants - Camberwell Serviced Apartments and Monolith International – returning a current net annual rental of $705,356.

Mr Heatherich said the very strong price point and yield reflected a long list of key investment attributes including an almost new and securely leased building in a blue chip suburb.

“This property has all the credentials that attract serious investors. It is located in a blue chip suburb only a short distance from the CBD, the building is near new with generous depreciation benefits and built-in rental growth, offers 4.5 star luxury accommodation, is fully leased and has excellent growth potential,” Mr Heatherich said.

Mr Zhou, who specialises in Asian investment and closed the deal shortly after the EOI close, said there were many offshore buyers waiting to take up any similar opportunities.

“There is always a very big appetite from Asian investors for quality real estate in affluent suburbs. These people do their homework. They know where to buy and what to buy - many having either lived or studied here – and are prepared to pay a premium when they do,” Mr Zhou said.

Mr Peden said the prime corner landholding underpinned the value of the property in one of Melbourne’s most sought after inner suburbs.

He said the locational benefits including schools, hospitals, extensive shopping, parklands, and public transport, made the property ideal for short and long term accommodation.

“It’s not surprising that the property has experienced consistent growth in both occupancy and room rates,” Mr Peden said.

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