Ocean Sky International buys Mount Waverley office for $21.83 million

Singapore’s listed Ocean Sky International is paying $21.83 million for a fully-let, four-storey office in Melbourne’s Mount Waverley.

The deal for 541 Blackburn Road is being struck on a 5.79 per cent passing yield (or 5.49 per cent, if stamp duty costs are factored in).

Vendor Vantage Property Investments – under the fund manager’s former guise of Spring and Parks – acquired the commercial building in 2003 for $8.15 million.

Vantage held the asset on behalf of a syndicate of local high-net worth private groups and self-managed super funds.

The office (shaded) occupies less than a third of the 6210 square metre corner plot.

Office occupies less than a third of the plot

With 3628 square metres of lettable area, the modern office with a high 4.5-star NABERS energy rating occupies less than a third of the 6210 sqm plot at the south west corner of Lionel Road.

The property is also configured with 157 car parks – some undercover.

National Australia Bank is the anchor tenant.

Property broker Little Real Estate and National Insurance Disability Scheme are amongst other occupiers.

The weighted average lease expiry is nearly four years.

The office sits within the Monash Technology precinct – a major Australian employment precinct – 430 metres from the Monash Freeway.

It is next door to a four year old office at 545 Blackburn Road and walking distance to Pinewood Shopping Centre, which offers hospitality and retail amenity.

Colliers International’s Peter Bremner and Rob Joyes with CBRE’s Scott Orchard, Josh Rutman and Lewis Tong closed an expressions of interest campaign for 541 Blackburn Road on October 31.

The suburb is about 18 kilometres south east of the CBD.

First Melbourne investment for Ocean Sky International

Ocean Sky International Limited said that the Mount Waverley asset will be retained by a wholly-owned Australian subsidiary.

The acquisition will be funded by a combination of internal resources and bank borrowings.

“The company has been exploring investment opportunities in Singapore and the Asia Pacific region to seek diversified sources of revenue for sustainable long-term shareholder value,” an Ocean Sky International statement about the purchase released in late December, said.

“Following extensive due diligence, the company believes the acquisition presents significant value and long-term opportunities.

“The acquisition is a transaction carried out in the ordinary course of the group’s business of property investment and the Board is of the view the acquisition will not materially change the risk profile of the group.

“The acquisition will allow the group to grow its portfolio of investment properties and to provide a source of recurring rental income and further diversify the group’s revenue”.

The office (front) is beside a taller four storey commercial building (545 Blackburn Road) completed in 2016.
The high quality office at 541 Blackburn Road returns annual rent of about $1.3 million.
Ocean Sky Investment’s Mount Waverley property includes 157 car parks, a mix of open-air and undercover.

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Marc Pallisco

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