This article is from the Australian Property Journal archive
THE National Archives of Australia (NNA) in Burwood East has sold for almost $32 million, with a brand-new lease in place to the Commonwealth of Australia in place.
31 Vision Drive sold to a Sydney-based syndicator, with the asset placed within the Tally-Ho Business Park with a lettable area of 6,432sqm on a Commercial 1 zoned site spanning 11,860sqm.
Scott Orchard and Will Heffernan from CBRE, alongside Peter Bremner and Jonathan McCormack from Gorman Commercial, managed the sale on behalf of the Dorman family, with the sale price reflecting a sub 7.5% yield.
“The healthy participation in the sale process and higher than normal ratio of inspections to bids is testament to the demand for long leases to the highest quality tenants, as well as the current interest in alternative style assets or those offering high-quality improvement opportunities,” said Orchard.
The purpose-built asset is 100% leased to the Commonwealth of Australia on a new 5-year lease, plus 4-year option and has been occupied by this tenant for the last 30 years.
The lease produces a net annual income of $2,366,862 per annum (plus GST and outgoings and including land tax).
With the site last trading in 2015 when Dorman Capital spent $24.25 million.
“[The] recent five-year lease renewal to the Commonwealth Government had been a catalyst for the group to redirect capital into its development pipeline,” said Nicholas Dorman, managing director at Dorman Capital.
The property boasts immediate tram and bus services, sitting off Springvale Road and near the corner of Burwood Highway. This in addition to easy via close proximity to the Monash Freeway, Eastlink and Citylink.
The sale comes after another CBRE managed transaction of an office building at 107 Overton Road, Williams Landing to Perth-based fund manager Ascot Capital for more than $25 million, reflecting a sub 6.5% lease.
While back in August, Charter Hall sold the former Foxtel building at 1 Dean Street in Moonee Ponds to MP Investments Management for $38 million, in the largest Melbourne Metro office sale to that point, with interest driven by a secure government tenant. After With Foxtel moved to Sydney’s Macquarie Park and Charter Hall undertook a re-leasing campaign and secured the Department of Agriculture, Water and Environment as the majority tenant at the site, on an initial 12-year term.
