This article is from the Australian Property Journal archive
AN office building within the Tally Ho Business Park in Melbourne’s east is going on the market.
Colliers International’s Peter Bremner and Rob Joyes in conjunction with Fitzroys’ Paul Burns and Michael Ryan, have been appointed to the expressions-of-interest campaign for 10 Wesley Court Burwood East, the long-time Australian headquarters of telecommunications giant Motorola Solutions.
The four-level 4,998 sqm building, one of 17 office buildings at Tally Ho Business Park, was purpose-built for Motorola. The top office floor was is leased to The Salvation Army. The tenants combined pay a net annual income of $1.363 million per annum with a WALE of about four years.
The property last changed hands in October 2013 for $13.025 million.
“This is a modern passive commercial investment opportunity with secure leases to two high-calibre tenants,” Bremner said. “Motorola has occupied this building since its construction in 2000 and has invested heavily in the facility’s amenity in that time.”
Burns said the site posed significant value for money and rent reversion potential, with the secure tenancies promising sustainable cash flow.
“Both Motorola and The Salvation Army are paying a low rent on a dollar-per-square-metre basis compared to surrounding tenants.
“When compared to city-fringe and inner-east suburbs, the expected sale price will show a compellingly low capital value rate per square metre and also a higher yield,” he added.
The property occupies a large land holding of about 8444.5sqm, with two access points and parking for 218 cars.
Burns said given the flexible Commercial 1 zoning and significant land parcel, the future redevelopment prospects at this versatile property are significantly enhanced.
“Whilst it is an excellent investment now, it has the attributes of a ‘land bank’ which may accommodate an alternative use (potentially medium density residential) in the future,” Burns said.
Australian Property Journal
