Trust building sale sparks optimism

The sale of the Koorie Heritage Trust building in King Street for $8.64 million was further evidence of a resurgence by private local investors, agents say.

The sale of the Koorie Heritage Trust building in King Street for $8.64 million was further evidence of a resurgence by private local investors, agents say.

And Tuesday's cut in official interest rates is likely to spur more activity, particularly in the CBD's secondary market, they maintain.

The trust sold its headquarters by closed boardroom tender following expressions of interest that attracted 11 potential buyers, CBRE selling agents Josh Rutman and Ed Wright said. The final price was $1 million in excess of the vendor's initial reserve, they said.

Set up to promote and protect Koorie heritage and culture, the 25-year-old trust will move to a more central location over the next two years. It operates an exhibition space, gallery, museum, library and cultural awareness programs on the 2300-square-metre site and will lease back the three-level building at 295-299 King Street while it looks for new premises.

The building sold to a private investor on a passing yield of 6.94 per cent and follows several recent sales in the sub-$10-million market.

Last month a local businessman brought the CBD drinking and dining institution Campari House at 23-25 Hardware Lane five months after it initially went to auction for $5,999,000, on a yield of 5.01 per cent.

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