Another investment-grade office in Melbourne has sold ahead of schedule.
This time, in the leafy eastern suburb of Balwyn, a fully leased “trophy” building at 255 Whitehorse Road is trading for $18.4 million to Hong Kong listed retail group Glorious Sun.
The purchaser, which owns the Jeanswest brand, made headlines a year ago paying $42 million for an office at 324 St Kilda Road on the Melbourne city fringe. Earlier this week Glorious Sun acquired a half-vacant office in Melbourne’s Tally Ho Business Park in Burwood East for $9.6 million.
Agency Gorman Commercial listed the Balwyn investment three weeks ago with an auction scheduled for September 19.
Returning annual rent of $875,909, it is trading on a passing yield of 4.7 per cent.
With 2783 square metres of lettable area, and 83 car parks, the holding, on the north-west corner of Weston Street, spreads a site of 1976 sqm.
Zoned Commercial 1, which would allow for the construction of apartments, it was expected to arouse interest from developers as well as investors.
The vendor, a private partnership, paid $2.1 million for the building in 1994. At the time, it was 50 per cent vacant, Mr Gorman, who also sold the office then, said.
The Balwyn deal comes in the same month Colliers International sold a West Melbourne office before the close of an expressions of interest campaign.
That asset, 363 King Street, was acquired by a Chinese investor following a knock-out bid of $18 million (it hit the market four weeks earlier with price expectations of $16 million). Daniel Wolman, Oliver Hay and Matt Stagg were the marketing agents.