Kew Corporate Centre sells for $20 million-plus – a sub-4 per cent yield

The enormous but under-utilised Kew Corporate Centre has sold less than six weeks after it was listed.

Actually in Kew East, the office complex attracted 225 enquiries, 32 inspections and nine offers.

It is trading to a local investor for a speculated price of more than $21 million – a deal which would reflect a fully-let yield of less than 4 per cent.

When the asset hit the market, price expectations circled $19 million.

Knight Frank’s Tom Ryan, Tim Grant and Paul Henley represented the vendor, LU Simon director, Peter Devitt, who paid $5.3 million for the asset in 1991.

The Kew Corporate Centre in High Street, Kew East. The complex also fronts Burke Road.

All parties declined to comment about the sale when contacted.

During the campaign, the brokers promoted the development upside of the 4864 square metre block which covers the addresses 830-832 High Street and 1401 Burke Road, about eight kilometres east of the Melbourne CBD.

A residential project, aged care complex, hotel, shopping centre, or bigger office, could replace the site, which is on the Balwyn North border.

The holding currently contains four buildings with a total lettable office area of 3520 sqm, 92 per cent of which is occupied.

On a fully-leased basis, Knight Frank estimates the annual rental return to be $823,745.

79-83 High Street, Kew, sold for $19 million.

Kew Corporate Centre is about a kilometre east of the Kew Junction where in April, syndicator Terraplex paid $19 million for another low-rise office, containing 3361 sqm of area, on a 3760 sqm block, at 79-83 High Street, Kew (pictured, above).

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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