This article is from the Australian Property Journal archive
A MAJOR car park investment property at 300 Flinders St in Melbourne's CBD is on the market and is expected to fetch in excess of $30 million.
The 9-level car park with 574 bays is being marketed by Savills Australia’s Clinton Baxter and Nick Peden, on behalf of Leigh Seymour, who recently bought the McWhirters car park in Brisbane for $44 million together with her father Kevin Seymour.
The property will be sold with a new 10-year lease to Secure Parking at a current net income of $2,429,000 per annum. The lease has built-in rental growth.
Peden said the property offered an attractive initial yield, plus the benefit of fixed rental increases, and depreciation benefits.
Baxter said the property’s location ensures strong 24 hour, 7 day per week trade, given the close proximity to numerous major office towers as well as the advantage of being adjacent to the retail core of Melbourne.
In May this year, Peden and Baxter sold a small car park at 517-537 Flinders Lane, comprising 106 bays, to a Malaysian investor for $6 million.
“Investors love to own CBD car parking facilities especially given the planning policies aimed at limiting development of additional facilities leading to ever-increasing car parking rates.
“Facilities can operate on an automated basis, can trade 24/7, have extremely low maintenance and refurbishment costs, and vacancy is virtually non-existent,” Peden said.
“This is an extremely tightly-held segment of the market. Years can pass without a car parking asset being offered to the market.
“Furthermore, car parks are very appealing to local and offshore investors alike because of the relative ease of management of the asset,” Baxter said.
The car park is part of the Victoria University building, which was sold by Baxter and Peden last month. It was purchased by Singapore’s Hotel Grand Central for $48.497 million.
The expressions of interest closes Tuesday 3 December at 2pm.
Property Review
