This article is from the Australian Property Journal archive
A SUBURBAN office building at Malvern East in Melbourne’s south-east has sold to a private investor shortly after auction for $9.85 million.
Colliers International’s Peter Bremner and Ben Baines, in conjunction with Robert Kelly of Gorman Kelly, sold the 1911 Malvern Rd Malvern East property.
The property was sold shortly after auction to private investor Garry Dumbrell, who also acquired 17-27 Cotham Rd Kew for $10.3 million two years ago.
Bremner said the strong sale of 1911 Malvern Rd was reflective of the lack of supply in 2015 for quality suburban commercial office investments.
The three-level property comprises 2,315 sqm of space with 87 on-site car parking spaces, on a land area of 1,604 sqm. It fully leased returning a net income of approximately $717,091 p.a.
“The campaign was extremely well received, with in excess of 150 enquiries from a mix of local private, offshore and syndicate buyers. With a WALE of approximately 1.3 years, it was the underlying land, ripe for future redevelopment potential (STCA) and the underlet nature of the building that underpinned the eventual 7.28% yield,” he added.
Kelly said the sale represented a rare opportunity to purchase a multi-tenanted freehold office building in Melbourne’s tightly held Metropolitan office market with future development upside (STCA).
“Investors were attracted to the fully leased nature of the building and blue chip Malvern location, whilst developers were drawn to the Commercial 1 zoning which allows future residential use (STCA). There is a substantial apartment project under construction on the opposite corner, which sets the scene for development in the immediate area,” Kelly said.
Australian Property Journal
