Glorious Sun offloads Tally Ho office after three years
Hong Kong listed retail group Glorious Sun has sold a renovated office in Burwood East’s Tally Ho business park after three and a half years.
The double storey building with 110 car parks on 4867 square metres at 16 Lakeside Drive, on the south east corner of Wesley Court, is collecting $13 million from BFX Family Office, a local investor with other property in the area.
Fully leased to the Country Fire Authority, Everkeen Group and Cora Group, the price reflects a 6.1 per cent yield.
It also values the lettable area at $5620 per sqm.
Glorious Sun, which outlaid $9.6m for the then half-vacant property, was represented by Colliers’ Peter Bremner, Rachael Clohesy and Leon Ma with Gross Waddell ICR’s Raoul Salter.
The sale comes three months since ISPT spent $35.8m on a nearby, larger office, 8 Lakeside Dve.
That vendor, TE Capital Partners, also turned around a major short term capital gain, having paid Kador $18m in 2017.
Buyer intends to landbank
Mr Bremner said 16 Lakeside Dve represented a quality investment opportunity that doesn’t come along often in Melbourne’s metropolitan market (story continues below).
“It is difficult to find a fully leased investment in the $10-$15m price range so we were not surprised that the campaign generated significant interest from a wide range of investors,” according to the executive.
Mr Ma added the buyer was looking at the Burwood East property as a land banking opportunity.
“The property…is well connected to transportation options including bus and tram services along Burwood Highway, Glen Waverley train station, Monash Freeway and Eastlink,” he said.
“Tally Ho…is surrounded by picturesque parklands including East Burwood Reserve and Billabong Park, as well as beautiful lakes,” according to the agent.
“All of this adds up to make the park a highly sought after corporate address and rarely vacated”.
Ambulance Victoria, ANZ, the Emergency Services Telecommunications Authority, IAG, Motorola, Pronto Software, The Salvation Army, VicRoads and World Vision are amongst the major occupiers in the business park, Mr Ma added.
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