- A modern office asset in East Melbourne has sold for over $51m
- The five-level building sold to Bayley Stuart in a deal brokered by Colliers
- The building offers a sought-after location, sustainable design, and spacious basement carpark
A modern office building located in East Melbourne has sold for more than $51 million to locally-based commercial property investment manager, Bayley Stuart.
The five-level office building, located at 289 Wellington Parade South, drew a final sale price of $51,785,000.
Colliers agents Daniel Wolman, Matt Stagg, Oliver Hay and Leon Ma brokered the sale on behalf of Harmony Property Investments.
The property offers a net lettable office space of 5,526 sqm and includes a rooftop terrace with city views and a basement carpark with 58 parking spaces,
The building’s lease profile is anchored by insurance brokerage Arthur J Gallagher & Co in addition to other government and corporate tenants.
The sale represented a capital value of $9,365/sqm and a
passing yield under 4.50%.
Sale highlights investor confidence in Melbourne’s office market
The property’s Wellington Parade South location puts the building in proximity to the East End office precinct and directly neighbouring the proposed Treasury Square development.
Colliers Head of Investment Services Victoria Daniel Wolman said the sale indicates long-term investor confidence in the Melbourne office market regardless of interest rate rises.
“289 Wellington Parade South received strong domestic and international buyer interest because the precinct is underpinned by State Government Victoria, which has attracted major investment and development including 32 Flinders Street, Melbourne (GPT Funds Management), 30 Flinders Street (Time & Place), 21 Spring Street (Cbus Property) and 85 Spring Street (Pelligra Group),” said Mr Wolman.
Lloyd Ioannou of Harmony Property Investments described the property as a fantastic investment-grade asset that has delivered consistently strong returns.
“The fundamentals of the property remain as true today as ever, being its premium location, quality of build, consistent ability to attract and retain strong tenant covenants, not to mention the future upside upon activation of the Treasury Square precinct.”
Lloyd Ioannou, Harmony Property Investments
289 Wellington Parade South will join Bayley Stuart’s increasingly impressive portfolio, which includes several brand-new Melbourne fringe office assets.
Bayley Stuart Managing Director Andrew MacGillivray highlighted the exceptional design and location of the office asset, describing it as “ahead of its time”.
“The asset is in line with our focus on flight-to-quality modern office assets in attractive CBD fringe locations,” concluded Mr MacGillivray.
