This article is from the Australian Property Journal archive
VANTAGE Property Investments has leased around 2,000 sqm of office space in the 1 Chapel Street building in Melbourne’s eastern suburb of Blackburn, having just paid $30.2 million to acquire it from News Corp.
The electrical wholesaler, Lawrence and Hanson will consolidate two offices in South Melbourne and Heidelberg and move into the second floor of the building, agreeing to pay $345 per sqm on a 10-year term.
CBRE’s Gianni Macdonald and Knight Frank’s James Treloar negotiated the lease.
Macdonald noted the Blackburn precinct site’s proximity to retail amenity and public transport made the offering particularly appealing to office occupiers, within walking distance a train line and bus stop.
The 6,059 sqm building traded off-market largely vacant, partially leased to Leader Newspapers on a five-year deal.
Vantage Property’s Matt Spring said the transaction further demonstrated the strength of the metropolitan office market, which is “driving Vantage Property Investments’ appetite to acquire suburban assets in proven locations, supported by quality amenity and public transport infrastructure”.
The Melbourne-based fund manager offloaded two eastern suburbs assets earlier this year, including 271 Wellington Road in Mulgrave for $9.75 million and 18-20 Prospect Street in Box Hill for $14.72 million, and turning a near-$10 million profit on the combined acquisition and sale prices.
Australian Property Journal
