This article is from the Australian Property Journal archive
THE headquarters of automotive retailer Repco at Mulgrave in Melbourne’s south east, has been listed for sale through CB Richard Ellis and Gross Waddell.
The 362 Wellington Rd property has been occupied by Exego (trading as Repco) for approximately 17 years and the company recently committed to a new six-year lease.
The sale campaign which will be steered by CBRE’s Justin Clarkson and David Robertson and Gross Waddell’s Jonathan McCormack and Andrew Waddell. Tenders will close Thursday October 13 at 4pm.
Clarkson said the property was an outstanding asset which offered a range of significant attributes, including a large landholding of 8,719 sqm.
The site includes a functional two-level office building which offers ongoing depreciation benefits and a total lettable area of 3,611 sqm.
McCormack said the strength of the underlying tenancy covenant would be another draw card particularly given Repco’s length of tenure at the property.
He added that Mulgrave has experienced the greatest decline in vacancy rates of any suburban Melbourne office market over the past 12 months to 7.8%.
Clarkson said supply of new office space over the next two to three years was expected to remain modest with the exception of two pre-commitments at Nexus Business Park to Carlisle Homes and Bristol Myer Sqibb.
“We expect the vacancy rate in Mulgrave will continue to fall which in turn will place upward pressure on rents,” Clarkson said. “The strength of tenant demand had been highlighted by the 6,800 sqm of office lease deals that have been completed within the Mulgrave Business Park in the past six months across three buildings. Increased net absorption, coupled with the limited supply of quality investment stock, is expected to fuel intense competition for suburban office investments such as 362 Wellington Rd for the balance of 2011.”
Australian Property Journal
