This article is from the Australian Property Journal archive
THE Greenwood Business Park in Melbourne's south-eastern suburbs has been placed on the market, in one of the largest suburban office property offerings this year.
The property is being offered for sale by boutique agency Dawkins Occhiuto in conjunction with Colliers International by sale through expressions of interest, which closes Thursday 14th June 2012. The agents are quoting circa $65 million, with the property returning $6,257,000 p.a. on a fully leased basis.
Greenwood Business Park is currently 89% leased and is supported by anchor tenants Telstra and Deakin University, both recently agreed to new lease terms over expanded space within the park.
“This is a highly attractive suburban investment with scale, offering the new owner an attractive yield, an asset well below replacement value and premium grade tenants as anchors,” Dawkins Occhiuto director Andrew Dawkins said.
“The current owners have recently injected a significant amount of capital to secure NABERS ratings ranging between 3.5 and 4 stars on the existing buildings with further CAPEX having been invested in fully refurbishing various tenancy areas,” he added.
Completed in 1991, the property comprises three modern commercial office buildings with a total lettable area of 19,910 sqm. There is car parking for approximately 968 vehicles.
Dawkins said potential purchasers with a long-term view will also be able to capitalise on the existing development approval for an additional office building providing a further 4,800 sqm of space and parking for 153 cars.
“Greenwood Business Park is in the heart of Melbourne’s suburban white collar market, within one of the city’s most affluent catchment areas. The calibre of this property is best highlighted by Telstra’s recent decision to consolidate several of its operations to this site,” Colliers Peter Bremner said.
“Ongoing demand for Melbourne suburban assets is being fuelled by a continually growing tenancy base and consistently low vacancies. With new supply limited, due to both lack of sites and funding constraints, the outlook for rental growth is strong.” Bremner concluded.
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