This article is from the Australian Property Journal archive
IMPACT Investment Group has cashed in the EPA building in Melbourne, selling it to Australian Unity Diversified Property Fund for $42.3 million after buying it seven months ago for $33.55 million.
Located at 200 Victoria St Carlton, the property was purchased by the IIG EPA Trust in December last year and it was approximately 30% vacant.
In early 2014, IIG secured Trinity College, the University of Melbourne on a 10-year lease that commenced on 1 June 2014. The EPA Building is now fully occupied with a WALE of 8.6 years with 96% of income secured by two blue chip tenants.
As at March, it was valued at $37,300,000.
IIG’s CEO said the group’s intention was to hold the property for at least four years, for its strong tax deferred cash yield.
“Consequently, IIG had not marketed the property. The offer for the option to purchase was received from DPF off-market and subject to extensive due diligence by DPF during May and June.
“The IIG board resolved to grant the option to DPF on the basis that, if exercised, it will be at a significant premium to the independent valuation and the purchase price and will provide our investors with a strong return on their funds invested within the trust term,” he added.
If exercised, the offer represents a 26.1% premium to purchase price and 11.8% to the independent valuation.
The seven storey building comprises 7,490 sqm of office accommodation over six levels, 422 sqm of retail space over three tenancies on the ground floor and eight secure on-site car parking bays.
IIG currently has approximately $100 million in assets under management. It is owned by CEO Chris Lock and Small Giants, the family office of Daniel Almagor and Berry Liberman.
Property Review
