This article is from the Australian Property Journal archive
VANTAGE Property Investments had divested an office building in Melbourne’s satellite city of Box Hill for more than $17 million, with an investor picking up the asset despite its approval for a 30 level mixed use development.
A local private investor has swooped on the freehold office with value-add upside. The four level building at 26-28 Prospect Street has 3,028 sqm of space that is 91.4% leased with a 1.5 year weighted average lease expiry.
Colliers’ Peter Bremner, Leon Ma, Rachael Clohesy and Joe Kairouz managed the $17,158,000 sale following an expressions of interest campaign.
The property sold on a per sqm capital rate of $5,666.
“The property was offered with an approved planning permit for a 30-level mixed-use development, however was ultimately purchased by a private investor,” Ma said.
“The purchaser was a local private investor seeking a quality office with diverse tenancy mix in an established Box Hill location surrounded by amenity and public transport.”
The well-maintained office accommodation has a 4.5-Star NABERS Energy rating. It recently underwent refurbishment works including modernising of all amenities as well as office accommodation and full upgrades to the base building’s heating, ventilation and air conditioning systems.
Charter Hall has just picked up the 21-level Box Hill building home to the Australian Taxation Office for $230 million, on a yield of 5%.
Colliers sold an office building in the nearby suburb of Mont Albert for $27.85 million over summer on behalf of Troon Group and MaxCap on a circa 6% yield.
“The appealing Box Hill location, quality of the asset and potential for future redevelopment, positioned 26-28 Prospect Street as one of the most attractive offerings within the Melbourne metropolitan market for 2021,” Bremner said.
