Ascendas REIT is acquiring a major suburban Melbourne office on a forward-funding arrangement.
The listed Singapore real estate giant is paying Frasers Property Australia and ESR Australia $110.9 million for Building 1, 254 Wellington Road, Mulgrave.
The office will be one of four commercial assets developed on the former Peters Ice Cream factory, about 20 kilometres south east of the CBD.
FPA and ESR Australia listed the investment in mid-June – at the same time the pair announced Japanese car maker Nissan would relocate its headquarters to almost two thirds of the proposed space.
The eight-storey, 17,393 square metre complex is due for completion next May.
It will occupy a 1.1 hectare block, with an enormous multi-level car park (containing 913 bays).
On a fully let basis, the office is expected to return annual rent of about $6.15 million.
Based on the speculated sale price, Building 1, 254 Wellington Road, Mulgrave, is selling on a c5.55 per cent market yield.
CBRE’s Chris O’Brien and Neva Courts with JLL’s Joshua Tebb and Tony Iuliano represented FPA and ESR Australia.