This article is from the Australian Property Journal archive
JAPAN’S Nippon Telegraph & Telephone Corporation has settled on its $72 million acquisition of one of Melbourne’s most sustainable office buildings.
A subsidiary of the telecommunications giant opted to go through with the purchase of 200 Victoria St, Carlton despite the coronavirus outbreak that has slowed down and cast uncertainty over most markets.
Located at the top of the Melbourne CBD, the six level, A-grade office building has a net lettable area of 7,911 sqm and a 6 Star Green Star Office Design Rating. Weighted average lease expiry by income is 2.43 years. The Environment Protection Authority occupies much of the building, and Trinity College, part of the University of Melbourne, leases two floors and ground floor space on a 10 year lease until 2024.
The deal was reportedly agreed to between Christmas and New Year and included an option to for the buyer to back away without any fees up until late in March, and before Foreign Investment Review Board approved. In that time, the coronavirus emerged as a global threat and had arrived in and locked down Australia.
Australian Unity’s Diversified Property Fund was the vendor. The sale price came on a an initial yield of 4.92%, and at a 21% premium to its last valuation in October.
Its weighted average lease expiry increases to 7.7 years from 7.1 years as a result of the sale.
The fund paid $42.3 million for the building in 2014.
