Is this the most unique property of the year?
How much is the side of a prominent building in Melbourne’s CBD worth? Upwards of $3 million at auction, agents predict.
A wall that features a large digital sign near one of Melbourne’s busiest intersections is set to go under the hammer next month and, incredibly, is expected to sell for as much as an entire building.
The wall, near the corner of Flinders and Swanston streets, is to be sold as part of a Burgess Rawson investment portfolio auction in Melbourne on August 5.
Burgess Rawson director Graeme Watson says the auction of the wall and its attached sign is likely a first for Australia.
“It’s so unique, we don’t know of one,” Watson says, before predicting a high yield for whoever wins the bidding for the property, which sits directly across from Flinders St station.
The sign is to be sold after being placed on a separate title to the building
“The market is going to set the price. We think it’s a circa 11% sort of thing, for a number of reasons. The unique thing about it is it’s a trouble-free property. The tenant pays all the outgoings. It’s been a substantial sign location for over 20 years,” he says.
The unique property is rented to advertising company Digital Outdoor Media until 2039 for $375,000 per year (plus CPI increases and a market review every five years), which, if it is to achieve an 11% yield, equates to a sale price of about $3.4 million.
It’s so unique, we don’t know of one
Years ago the building was subdivided, with the outer wall split onto a separate title. Watson says the sign alone is worth a large portion of the expected sale price.
The sign is directly opposite Flinders St station
“It’s a brand new digital sign put up there and that sign costs in excess of a million dollars,” he says.
It is understood that there is an agreement in place to ensure more signs aren’t placed on the same wall, and another agreement to prevent an adjoining building from expanding and affecting the sign’s view lines.
Watson says the property would represent incredible value for investors.
“The property is expected to sell for circa $3 millon, giving a yield of around 11 per cent, whereas we’re seeing properties in the city sell for $3 million and (a yield of) 5%.
