The Sydney based investor said there is “significant potential” to reposition to asset, which is a kilometre away from the Glen Waverley train station and an activity centre undergoing almost $1 billion of private development.
The 3.1 hectare site covering the addresses 635-645 Waverley Road and 9, 11 and 11a Aristoc Road accommodates a multi-tenanted commercial asset (pictured top and left) measuring 16,284 square metres, built in the 1980s. Occupants include Waverley Antique Bazaar and the Glen Waverley Badminton Centre.
It will be the fifth asset added to EG’s Yield Plus Infrastructure No 2 fund which was launched just over two years ago.
The fund is intended to contain around 10 to 15 assets with a total net worth of about $750 million.
“The fund strategy is to acquire a portfolio of yield producing real estate with repositioning potential, near new or upgraded infrastructure,” the group said in this statement. “Future YP2 assets are typically located in areas considered by EG as likely to benefit from urban renewal and/or the construction of new transport and community infrastructure”.
Another EG fun, Yield Plus Infrastructure 1, was launched in 2006 and holds 17 assets acquired for a total of $311 million. Ten of these properties have since been divested “recording strong returns for investors”.
EG associate director, capital transactions, Sean Fleming, said there is significant potential to reposition the Glen Waverley property through capital upgrades to capture the market rental uplift in the strong performing south-east industrial market.
Offloaded by Australian Eastern Properties, Kelemen Commercial’s Rudy Kelemen brokered the deal.
Last year, Melbourne-based developer Jeff Xu teamed with Vicinity Centres to propose high density apartments, worth a speculated $450 million, on airspace of The Glen shopping centre, near to EG’s latest holding.
In August EG paid $46.2 million for a Brisbane office at 95 North Quay. This holding was purchased for the group’s High Income Sustainable Office Trust.