This article is from the Australian Property Journal archive
PERTH-based fund manager Ascot Capital Limited has snapped up a long-WALE Victorian state government for just over $25 million.
The 3,126sqm office property at 107 Overton Road in Williams Landing, around 19km south-west of the Melbourne CBD, was developed by Cedar Woods as its Williams Landing Town Centre masterplan.
Scott Orchard and the capital markets office team from CBRE negotiated the off-market sale of the property to Canberra-based vendor the Hellenic Club, at a sub 6.4% sale yield.
“The property was a strong, reliable asset for the club during our short period of ownership. However, a change of strategy and an equity requirement for an exciting development in Canberra precipitated the sale,” said Ian Cameron, spokesperson for Hellenic Club.
Hellenic Property Investments,the property arm of Hellenic Club of Canberra, entered into the $25.93 million sale agreement in July of 2018, reflecting a yield of 5.4% before settling the sale in March 2020.
The property is occupied by the Victorian government’s Emergency Services Telecommunications Authority.
“With 10½ years remaining on the original 15-year initial lease term, the strong covenant, property fundamentals, and age of the building continued to be of high appeal to Ascot, a group which expressed strong interest in our previous 2018 sale campaign for the asset on behalf of Cedar Woods,” said Orchard, senior director at CBRE.
The nearly new A-Grade commercial building occupies a 2,203sqm block and also includes 92 car bays and was designed to achieve a 4.5 Star NABERS Energy Rating.
The development was delivered alongside a headquarters building for Target and the Williams Landing Shopping Centre, following the delivery of several residential subdivision stages by Cedar Woods.
“We’re delighted with the acquisition of this high-quality property, which strongly aligns with Ascot’s portfolio and investment strategy,” said Peter Agostino, director at Ascot Capital.
