Docklands real estate, a bellwether for Melbourne's property market, has bounced back with a row of waterfront restaurants in Newquay Promenade selling for yields below 6.5 per cent.
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The MAB-developed Newquay precinct sits on the northern side of the harbour across the water from the more business-orientated Victoria Harbour.
Most of the precinct's buildings are residential apartments with retail outlets on the ground floor.
MAB purchased development rights from ING Real Estate to develop a waterfront hotel in the middle of the Waterfront City complex and has plans for another four residential towers in the area.
The restaurants, facing over the boating marina, sold with five- to seven-year leases in place for between $1.7 and $2 million.
No.42, 46 and 54 Newquay Promenade sold for a combined $5.58 million on yields between 4.8 and 6.35 per cent, MP Burke Commercial's Pat Burke said.
The properties were leased to long-term Docklands restaurateurs Bhoj Indian Restaurant and Renzo Italian, along with new Chinese arrival Mint-o-Mustard.
Mr Burke said two holdings were purchased by Sydney-based investors who saw value in their location on the waterfront and the third by a local investor.
Docklands' development had been a "journey" and was "always a 20-year process", he said. "It is starting to get more active."
Investors were looking for alternatives as the CBD's prices peak.
