This article is from the Australian Property Journal archive
A FOUR-level Bundoora commercial building tenanted by RMIT University and the Royal District Nursing Service has sold for almost $27 million, becoming the latest Melbourne metropolitan asset to attract price tag of close to $30 million recently.
The 30 Janefield Drive property is positioned on the corner of Princeton Terrace within the $1 billion, 104-hectare University Hill precinct in Melbourne’s northern suburbs. It has a 3,960 sqm building with three levels of office space and seven ground floor tenancies, and is on a 5,748 sqm site with 131 car parking spaces.
RMIT and RDNS account for 81% of the property’s income, which totals more than $1.563 million per annum with a weighted average lease expiry of nine years. The sale price of $26.93 million reflects a 5.88% yield.
It was developed by MAB Corporation and completed in 2015.
Knight Frank’s Tim Grant and Tom Ryan negotiated the deal in conjunction with Andrew Dawkins and Walter Occhiuto of Dawkins Occhiuto.
They said the expressions of interest campaign attracted significant interest local, national and Asia Pacific markets, and the sale price came in above the expected figure of $25 million.
Colliers International’s Metro Office Research and Forecast Report H2 2017, released earlier this week, said net effective rents for prime and secondary grade assets in metro Melbourne jumped by double-digit figures in the six months to September, by 13% and 12% respectively.
Last month a syndicate paid $24.65 million to acquire the two-level 4,000 sqm head office of aged care group Benetas at 785-789 Toorak Road in Hawthorn Eastat a 5.5% yield from IOOF; while Peak Equities acquired the headquarters of Australian Pharmaceutical Industries in the nearby Camberwell Junction precinct for $27.5 million in September.
Singaporean fund manager ZACD acquired the head office of ASX-listed iSelect in Cheltenham at 294 Bay Road for more than $27 million in June.
Australian Property Journal
