Feb 13 2017Add to Favorites
February 14, Melbourne – Two modern office buildings at the Leighton Properties developed Compark Business Park at Mulgrave are poised to fetch in excess of $20 million, representing an attractive yield as suburban office investments increasingly attract international attention.
According to Andrew Dawkins of the Boutique commercial agency, Dawkins Occhiuto, the suburban office market has attracted the attention of a deeper pool of investors as yields for CBD properties have tightened and the availability of stock diminished.
"Office investment markets have been particularly strong over the last three years and that has seen yields tighten and ultimately led to a shortage of stock with the result that investors now have their sights set firmly on the suburbs and particularly strong growth suburbs like Mulgrave in the City of Monash where yields have been quite attractive," Mr Dawkins said.
One of the fastest growing municipalities in Australia, the City of Monash, has a Gross Regional Product estimated at $13.95 billion, representing 4 per cent of Victoria’s GSP, and a population forecast to grow to 207,727 by 2036.
Located at 13 and 15 Compark Circuit, the property comprises two modern office buildings totalling 5851 square metres over two levels. The buildings will be sold subject to leases to US based fire and security provider Tyco Australia, residential homebuilder Carter Grange (ground level) and multinational personal care products business PZ Cussons, at a current estimated net income of $1.611 million per annum with a weighted average lease expiry in excess of four years.
Tyco, which currently occupies more than 78 per cent of 13 Compark Circuit has a seven year term, while 15 Compark Circuit is fully leased to Carter Grange, on a five year term and, PZ Cussons, on a 7 year term.
Situated on an 8330 square metre site the prominent buildings are located on two titles, separated by a common recreational/BBQ area, and benefit from an 87 metre exposure to Compark Circuit. The buildings also offer 111 and 115 car parking spaces respectively.
The property also benefits from its location on the northern side of Wellington Road just west of Springvale Road, one of Melbourne’s busiest intersections.
Mr Dawkins said the sale represented a prime opportunity to acquire a multi-tenanted investment on two titles, providing both flexibility and upside.
"This is quality property on a quality estate with quality tenants and one which we anticipate will attract very strong enquiry," he said.
Constructed in 2006, the buildings are located within the established, Compark Business Park, which is surrounded by a number of national and international organisations, including Canon, Caterpillar, KMart, Monash University, Mercedes Benz and Adidas.
The property will be sold by Expressions of Interest closing Thursday, March 16 at 3pm.
About Dawkins Occhiuto
Dawkins Occhiuto is a high quality commercial real estate agency founded by Andrew Dawkins & Walter Occhiuto, providing real estate services ranging from on-market public marketing campaigns to strategic off-market brokerage sales, specific consultancy advice and leasing instructions.
The Dawkins Occhiuto point of difference centres around the knowledge, skills and time commitment of the Directors who are personally involved in every instruction.
SOURCE: Press Release
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