This article is from the Australian Property Journal archive
A PRIVATE investor has paid $2.475 million for an office suite in the newly developed Arkana building located in Melbourne’s south eastern suburb of Dandenong.
Arkana offers retail, office and hotel apartment accommodation over eight levels. Two retail shops within the complex were sold to investors earlier this year and this latest sale is for a 739 sqm fully occupied office on Level 2 with 19 car spaces on title.
Jones Lang LaSalle’s Steven Messina and Matthieu Lucas in conjunction with Fitzroys’ Chris Kombi and Rob Harrington negotiated each of the sales and said that there are limited opportunities remaining in the building.
“The recent sale of level two of the Arkana building represents an initial yield of 8.36% at current rental with upside going to 8.7% after 1 November 2010. The office is leased to State Trustees Ltd, which is wholly-owned by the Victorian State Government, on a new 10 year lease.
“State Trustees Ltd also occupies Shop 4 and Level 3 of the complex, with the latter being one of the last remaining investments available within the landmark building, designed and constructed by Deal Corp. We expect a yield of circa 8.5% for this office which has similar attractive characteristics to the office on Level 2,” Messina said.
He added that level 3 is now available and, given its 10 year lease to such a strong covenant and significant depreciation benefits, it is not expected to remain on the market for long.
Australian Property Journal
