An Australian-based Chinese buyer has splashed a Scandi-lous sum on what could be Melbourne’s most savvy Ikea purchase — as well as its most expensive.
The storage warehouse rented to the Swedish flatpack juggernaut at 30-36 Grosvenor St — which luckily doesn’t require assembly — fetched $17.3 million in a recent deal.
Currently zoned Industrial 1, the 4616sq m property, including the 3600sq m building, returns about $845,000 net a year through the lease.
But it’s the future potential, rather than short term need, that could differentiate this Ikea buy from the pack.
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CBRE agent Mark Wizel said the purchase looked to be a longer term land-bank play, given the secure lease and the building’s proximity to the Ikea Victoria Gardens retail store.
“The property would obviously need to be rezoned for future development, but the sale continues the evolving trend of Chinese capital away from immediate development plays into more of a sit and watch play as opposed to set and forget,’’ Mr Wizel said.
“The Chinese have a reputation for being highly attuned to emerging market trends
with the ability to respond in quickly putting their new product to market.
“Conventional wisdom would suggest this area is ripe for rezoning to higher value
uses. It will be interesting to watch how it all plays out in the ensuing few years.”
The purchaser is believed to be the same buyer that paid $37.28 million for the former Lascorp and Herzog Group property a few doors down at 45-50 Grosvenor Street in October last year.
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