This article is from the Australian Property Journal archive
A Sydney-based syndicator has expanded into Melbourne with the largest metropolitan office acquisition in Mulgrave in six years, Australian Property Journal can reveal.
Sydney fund manager Tamim Funds Management has acquired 700 Springvale Road Mulgrave in Melbourne’s south-east for $25.175 million.
The property was sold by Prime Value Asset Management, which is managed by its sister company Shakespeare Property Group.
Before Prime Value, the property previously changed hands in 2006 when Opus Capital Group acquired the office building from the original owners, the Juilliard Group of Companies for $25.6 million.
Tamim will house the Mulgrave property in a new managed fund, which is forecasting a distribution of 7.25% in the first year and average distribution of 7.50%.
The deal was negotiated by JLL’s Josh Rutman, Tim Carr and MingXuan Li.
Tamim beat four other contenders for the asset, it was the only local player in a field crowded by offshore capital from Malaysia and Mainland China.
The agents said this is Victoria’s first major office investment transaction of the year and the largest to be completed in Mulgrave in six years.
“Buyer sentiment towards Victorian commercial real estate is consistently improving week by week, and there are now positive signs of growth that is stimulating purchasing activity (i.e. cash rate cut, incentive stabilisation and the bid-ask gap closing between sellers and buyers),” they said.
Located in the heart of the Monash health precinct, surrounded the Victorian Heart Hospital, Monash University, and M-City shopping centre, the fully refurbished building comprises approximately 6,826 sqm of space with 344 car parking spaces, occupying a 9,153 sqm land.
It is currently 89% occupied to a variety of tenants including Monash Health, CMP, Bunzl Australia and Arthur J Gallagher, with a WALE of 2.3 years, and an estimated fully leased net income of $2.57 million.
Furthermore, there is development potential to add between 3,706 sqm to 8,040 sqm of NLA.
