Henkell Brothers to Sell Two More Commercial Office Assets

The sales would bring the total value of commercial property offloaded in the last six months by the fund manager, which acts on behalf of various European-based syndicates, to almost $160 million.

Up for grabs is a 5,792 square metre office building at 4 – 10 Jamieson Street, abutting the Westfield Southland Shopping Centre in Cheltenham, about 21 kilometers south east of the CBD.

The 4-level office building includes 151 basement car parks and is fully leased, returning an annual income of more than $1.3 million.

A separate syndicate managed by Henkell Brothers will also offload a 2,968 square metre office building at 405 – 409 Nepean Highway in the Frankston central activity district, isolated by the State Government as an activity centre in the controversial Melbourne 2030 planning policy.

The fully leased double storey building includes undercover parking for 70 cars, water views and returns about $506,000 in annual income.

Nichols Crowder has been appointed to sell the properties with Colliers International.
Traditionally, leased suburban office investments arouse interest from private investors, and syndicates wanting steady rental income, and capital growth.

Late last year, Henkell Brothers Investment Mangement sold a portfolio of three commercial property assets to developer and fund manager Becton for $75 million. The properties included the former Wang House at 45 William Street, on the corner of Flinders Lane, 446 Collins Street and 19 – 23 Prospect Street in Box Hill.

Separately, Henkell Brothers also sold the Centre Way retail arcade in the CBD to a Singaporean investor for $34 million in December 2007.

It has been speculated Henkell Brothers is selling properties in its portfolio because it believes the Melbourne market has reached a cyclical high. In September 2007, when its first portfolio was put to the market, Henkell Brothers co-founder Hans Henkell said the company is looking to benefit from strong market conditions and the resurgent Australian dollar.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.