- Suburban Melbourne office sold for $60.25M
- Small 203 sqm freehold sold in Melbourne CBD for $8.45M
Nearly $70 million in real estate was today announced sold in Melbourne. A small 380 square metre freehold on Little Collins Street went for just under $8.5 million, and a suburban office was sold for over $60 million.
Frasers buy Melbourne office
One of the first major metropolitan Melbourne office buildings to be offered publicly this year has sold for $60,250,000 to Frasers Logistics & Commercial Trust.
Located at 545 Blackburn Road, Mount Waverley, the building’s developers sold the property with CBRE, the developers were a small syndicate that included founding members of carsales.com.
“The strong result sets a new benchmark for the suburban market for an existing multi-tenanted office investment,” said Senior Director Scott Orchard.
“Despite the rising cost of debt there is still motivated capital that is aggressively pursuing quality investments with the right location, improvement and tenant profile story.”
Chief Executive Officer of Frasers Logistics & Commercial Trust, Robert Wallace, said, “The acquisition is aligned with our strategy to pursue strategic opportunities which provides attractive yields and enables us to leverage our management expertise in Australia.
“With the property being 100% leased to reputable tenants in diverse industries, the Acquisition is expected to further enhance FLCT’s quality tenant mix and portfolio metrics, while providing unitholders with a stable income stream.”
The five-storey, A-Grade office building has a total net lettable area of 7,297 sqm. It is 100% leased to nine tenants with a weighted average lease expiry of approximately five years.
267 Collins Street
Despite being a little property on Little Collins, the asset fetched a hefty price tag for its 380 square metres.
Located at 267 Little Collins Street in Melbournes CBD, the freehold sold for $8.45 million.
The off-market sale saw the price reflect an initial yield of 1.3%, and huge land rate of $41,625 square metres.
The building comprises three levels: a ground-level retail floor, and a music bar occupying the upper two floors. The asset generates $110,000 per annum net.
A private investor purchased the property, with Fitzroy’s Chris Kombi noting: “The property also serves as an excellent landbank opportunity. The 203 square metre site is zoned capital city 1 and the purchaser can earn a significant income stream from a secure lease while assessing its longer-term options.”
