Growthpoint Properties has paid $125 million for a recently completed office in Melbourne’s leafy Hawthorn East.
The campus style building, 141 Camberwell Road, with 10,249 square metres – a fifth of which is retail – and a 304 bay basement car park, is trading at an initial 4.71 per cent yield.
Cushman & Wakefield’s Leigh Melbourne, Nick Rathgeber, Mark Hansen and Josh Cullen represented the vendor, Bluepoint Projects, part led by ex-Collingwood footballer Paul Tuddenham.
The office, and hundreds of apartments around it, forms part of a major mixed project replaced the Bilia Volvo site, part of the Camberwell Junction shopping precinct, 600 metres from Camberwell station.
The purchase comes three months since Growthpoint paid Altis $84.6m for Canberra’s Penryhn House, in Phillip – a price reflecting a 5.3pc fully let return.
Last September the manager doubled down its investment in the Dexus Industria REIT (formerly APN Industrial REIT) with a near $51m outlay for new securities.
Strong sign of things ahead: agent
Also known as QV@141 Camberwell Rd, the four storey building is integrated into the apartment development; its rooftop is a resident-only pool.
Growthpoint describes the c2020 asset as Hawthorn’s best mixed-use development, with 360 degree views including to the CBD.
The Weighted Average Lease Expiry is 6.9 years (story continues below).
“With arguably suburban Melbourne’s strongest tenancy profile including Siemens Healthineers, Cabrini Health and Miele, the area is home to an exceptionally highly educated demographic, with financial, insurance, professional, scientific and technical services the dominant industries,” Mr Melbourne said.
“Bids were received from both onshore and offshore capital and from REITs and private investors, demonstrating a diversification of capital sources,” he added.
“The sale was achieved following a competitive expressions of interest process, a strong sign of things ahead for the Melbourne investment market,” according to the executive.
The sale comes nine months since Centuria paid Deague Group $205.12m – reflecting a five pc market yield – for a near-new office at 101 Moray St, South Melbourne, not long after investing $223.7m for one in Footscray, in the west.
In December, Irongate outlaid $130m for a half-stake in an office under construction at 510 Church St, in inner east Cremorne.
At the smaller end of the market, last month, Rathdrum spent $40.5m on a new seven level commercial building, also in Cremorne, at 2-6 Gwynne St.
That deal with Roche Holdings, represented a 4.69pc return.
Late last year the Minogue family offloaded a modern office at 108-110 Church St, Hawthorn, for nearly $20m – a c4.9pc yield.
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