One of Melbourne’s biggest strata deals of the year has been secured in Southbank, with the ground‑floor asset at 27 Coventry Street selling for $5.15 million amid a surge of interstate investor interest that defied Victoria’s current land tax headwinds.
The campaign drew over 146 enquiries nationwide, with buyers from New South Wales, Queensland, Tasmania and Victoria all circling the 517 sqm property.
The property is leased to NIOA, the largest privately owned munitions supplier to the Australian and New Zealand defence forces, a covenant that resonated with yield‑focused investors seeking stability in a volatile economic environment.
According to Jack Cooper and Valerie Tang of Cushman & Wakefield who sold the asset, the strong national appetite was driven by a combination of defensive fundamentals and the asset’s blue-chip positioning.
Jack Cooper of Cushman & Wakefield said the campaign generated robust interstate investor demand, with the depth of enquiry ultimately culminating in a NSW purchaser securing the asset.
“Interest was underpinned by the asset’s blue-chip city fringe location, complemented by a secure tenancy to NIOA,” he said.
Developed in 2018 by Evolve Development, the building sits just 500 metres* from the new Anzac Station and moments from the Royal Botanic Gardens, placing it in one of the most tightly held pockets of the city fringe.
Mr Cooper said the combination of modern construction, transport connectivity and proximity to the CBD helped elevate the property above typical strata offerings.
“What makes the result particularly noteworthy is the timing. With Victorian investors recalibrating in response to rising land tax obligations, interstate capital has stepped forward, viewing Melbourne as a relative value play compared with Sydney and Brisbane, where yields have tightened.
“The campaign was “highly competitive,” crediting both the property’s fundamentals and a national canvassing strategy for the outcome” he said.
Valerie Tang of Cushman & Wakefield said
“The sale of 27 Coventry Street signals that while local sentiment may be mixed, interstate investors are far from deterred.
“In fact, they appear increasingly willing to cross borders in pursuit of secure income and long‑term growth” she said.
