CBD Sale on Melbourne’s most prestigious retail strip

Property Address: GF, Unit 5, 422 Collins Street, Melbourne VIC 3000

Sale price: $4,150,000

Vendor: Undisclosed European-based private investor

Purchaser: Melbourne-based private investor

Campaign method: International Expressions of Interest

Transaction timing: June 2023

INTRODUCTION

In June 2023, Paul Jones and the Jones Real Estate team were appointed to manage the sale of GF/Unit 5, 422 Collins Street, Melbourne – a highly-desirable 531 square metre retail property within the iconic Temple Court building in the city’s vibrant mid-town precinct.

CHALLENGE

While the characteristics of the property were strong, some fundamental challenges were navigated to deliver a successful transaction result, including its cold shell presentation, limited direct frontage to Collins Street, softened market sentiment for CBD retail assets and the increased cost of borrowing capital.

STRATEGY

Mindful of these market conditions, the experienced sales team tailored an International Expressions of Interest campaign strategy, focussing on digitally-inclined cash buyers via targeted social and digital media from across the owner-operator market.

The key attributes of the property leveraged during the sale were its desirable Collins Street address, potential yearly rent of $320,000, strong daily footfall (approx.16,000 people), cold shell format offering a ‘blank canvas’ retail opportunity, serviceability to the surrounding worker/resident population, connectivity to public transport and proximity to short-stay accommodation like the W Melbourne hotel.

“We were immediately impressed by Paul’s deep understanding of the Melbourne CBD market and his team’s knowledge of how to utilise social media to drive high-quality enquiries. Paul and the Jones Real Estate team exceeded our expectations for the sale and we would certainly work with them again.” Vendor, GF, Unit 5, 422 Collins street, Melbourne VIC 3000.

We extend a special thanks to our vendor, for entrusting the sale appointment with Jones Real Estate.