South Yarra prime corner brings $13m

A Melbourne private investor has paid nearly $13 million to acquire a prominent South Yarra corner site that has been occupied by National Australia Bank for more than 60 years.

A Melbourne private investor has paid nearly $13 million to acquire a prominent South Yarra corner site that has been occupied by National Australia Bank for more than 60 years.

The unidentified purchaser fought off six other parties at last week's auction, paying $12.825 million for the 332-square-metre site.

The strong sale resulted in a tight yield of just 4.6 per cent, which agents say reflects the intense competition for properties leased to prime tenants such as banks.

"NAB has been in the spot since 1951," said Fitzroys director David Bourke.

"It's also very much a landmark corner." The campaign was run in conjunction with fellow agent Charles Emmett.

The NAB branch is entering the second year of its latest five-year lease, while the office space on the second level is leased to another company on terms that end next year.

The property at 600 Chapel Street was bought from NAB for $3.585 million in 1997 in an apparent lease-back arrangement.

Fitzroys leasing executive Harry Curtis said other banks, particularly Bank Melbourne and CBA were expanding their branch networks.

Fitzroys recently negotiated a lease with the Bank of Melbourne for 701 Glenferrie Road in Hawthorn and a deal with Citibank at 610-612 Burke Road in Camberwell.

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