Ignition started on South Yarra BMW sale
The brand might be marketed as the ultimate driving machine, but the home to South Yarra BMW could prove to be the ultimate property investment.
The building is poised to become the second priciest property ever sold in Prahran, and even attracting overseas interest.
Sutherland Farrelly director Grant Sutherland describes the 145 Williams Rd property as arguably one of Victoria’s most prestigious investments.
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Accordingly, buyers were expected to make a strong show for the property currently returning $1,857,665 a year in rent.
“We are talking a circa 5 per cent return,” Sutherland says.
At that level, the sale price could be north of $37 million — between the current top two prices ever paid in the suburb.
South Yarra BMW has another 11 years on the lease at the building.
Even with the hefty price tag, the rarity of the property is driving more interest than any other listed by Sutherland this year.
That includes strong interest from offshore, Sutherland says.
He expects the buyer will wind up being a high-net-worth individual from overseas.
“It’s more likely that it will be a high-net-worth offshore buyer,” Sutherland says.
A sale at $37 million would mark the property as one of the priciest in Prahran.
CoreLogic records show the priciest property deal in Prahran to date was for the 1259sqm ground floor space at 162 Commercial Rd, opposite the Prahran Market.
The property includes 5920sqm of floor space.
That property sold for $47 million late in 2015.
A 2006 deal worth $34.611 million for 325 Chapel St, now home to Pran Central shopping centre, was the next highest figure.
The points attracting buyers centred around the location, 3887sq m size and the commercial benefits of the site, he added.
“It’s got a 15 year lease with 11 years to run,” Sutherland says.
“It’s got a lot of underlying land value. And there might be only half a dozen similar sites across Melbourne.”
This article from Leader Newspapers first appeared as “International investors revved up for BMW South Yarra sale”.
