Blueprint Property sells Bvlgari's Sydney store for a record price!
Manuel Pavia , Associate Director of Blueprint Property has sold the Bvlgari flagship store at 64 - 68 Castlereagh Street, Sydney to German fund DEKA Immobilien for a record price, in excess of $55 million.
The strong sale price represents a yield in the vicinity of 4% and demonstrates the high level of demand for retail strata properties.
The first record for retail strata was clinched in December 2015, when a Spanish private investor purchased the luxury Bulgari flagship store for $28.7 million. Mr Pavia was appointed as the exclusive agent who acted for the Spanish investor when they purchased the property in 2015.
Blueprint Property have actively managed the property for the last three years and Mr. Pavia conducted an off-market campaign in selling the property, which attracted interests from investors all over the world, with European investors most keen to secure this type of property.
Asian investors are not accustomed to purchasing this class of property and prefer freehold buildings, whereas European investors have a history of purchasing high-end retail strip properties. These assets continue to form an important part of their property portfolio.
The multi million dollar new fit-out of Bvlgari and the commitment by the brand to a new long-term lease demonstrates the confidence high-end retailers have in Sydney and in particular Castlereagh Street becoming renowned as the golden mile of Sydney. The recent sale was completed after extensive negotiations on a new 10-year lease to Bvlgari and a full refurbishment of the flagship store.