Hardware Lane building sells in a cyclone of cash

Friday 22 September 2017

 

PROMINENT Hardware Lane building Cyclone House has changed hands for $6.71 million in its first sale in 45 years. A Chinese investor outbid four other competitors to secure the keys to the 1930s Art Deco building for $660,000 more than reserve. Allard Shelton auctioneer Joseph Walton said the sale drew attention to “the strong appetite for A-grade investments in Melbourne” from local and international buyers.

At the midweek auction, the eventual buyer opened the bidding at $5.2 million and saw off all competition including from a local underbidder. The 17-19 Hardware Lane site had been owned by the same family since 1972, when they bought it for $86,000, according to Allard Shelton director Patrick Barnes. It underwent an extensive internal renovation and lavish fitout for former tenant, Careers Australia — which went into voluntary liquidation in May. The 405sqm property spreads across three levels. Externally, the property has been restored with original features maintained. Allard Shelton director Michael Ryan said the property’s point of difference was that it held a prime position, was freehold and had the potential for “a multitude of investment options.”, “Opportunities such as this in the CBD are scarce,” he said. “Possessing all elements of a good investment, it was no surprise that the campaign attracted astute investors from both near and far, producing the competitive result that it did.”

The sale follows the recent $11.57 million sale of a prominent 297sqm property on the corner of Hardware Lane and Bourke St.

Australia’s oldest snow gear store Auski and the Corner and Bench Cafe have ongoing tenancies at the 9-11 Hardware Lane/408-412 Bourke St site, which changed hands last month. That result was almost $3 million more than reserve. Campari House ($8.1 million in 2015) and the Kozminsky building ($7.6 million in July) have also sold recently.

 

    

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