The double-storey building at 16 Lakeside Drive, East Burwood (pictured top and left), carries a vacancy rate of 50 per cent – a point used by the brokers to promote the asset to owner-occupiers, which have been prominent property buyers over the last couple of years.
On a 4900 square metre site, the 2348 sqm building, with 110 car parks, has a four-star NABERS rating.
The ground floor – an area of about 1200 sqm – is rented to the Country Fire Authority, which has its headquarters within another Tally Ho office – 8 Lakeside Drive (an asset which sold last year to Singapore’s Tong Eng Group for $18.1 million).
The CFA pays annual rent of approximately $448,063 for its 16 Lakeside Drive tenancy making the passing yield for this transaction about 4.7 per cent.
Colliers International’s Rob Joyes confirmed the sale today.
The purchaser, he said, is Hong Kong listed retail group Glorious Sun, which owns Jeanswest and last year paid $42 million for 324 St Kilda Road on Melbourne’s city fringe. Mr Joyes marketed the site with colleague Peter Bremner and Teska Carson’s Michael Ludski.
Tally Ho was developed in the 1990s as Melbourne’s first master-planned business park.
An office at 12 Lakeside Drive – which is between #8 and #16 – is also for sale at present, with price expectations of more than $22 million. Fully leased to government agency VicRoads for $1.6 million per annum, and on a substantial 1.7 hectare block – this asset is being offloaded by interests associated with the Myer and Baillieu families.