TE Capital Partners has nearly doubled its money selling an East Burwood office after four years.
The Country Fire Authority headquarters at 8 Lakeside Drive, within the Tally Ho business park, is trading for $35.8 million – a sub 4.5 per cent yield.
The buyer, ISPT, will hold it in the CIB Fund.
On 5484 square metres, the three level building with 121 car parks was developed in 1988 and refurbished this year.
Telstra also occupies part of the 4552 sqm of space.
Singapore based TE is the private investment arm of Tong Eng Group managing director Teo Tong Lim.
Last year we reported the company, in a partnership with Roxy-Pacific, paid 3L Alliance $145m for the 21-storey KTS House at 350 Queen Street in the CBD (story continues below).
8 Lakeside Drive
TE paid Kador $18.1m for the Burwood East asset – a deal which reflected a high 9.38pc yield, indicative of the short Weighted Average Lease Expiry at the time (just over two years).
It was offered this time around following a 10 year commitment to the anchor tenant; the WALE was 9.25 years.
“This transaction reinforces market demand for quality office assets in up-and-coming regional office hubs and is consistent with our strategy of divesting non-core assets” TE managing director Emilia Teo said. “The firm remains committed to key real estate markets and will continue to acquire quality assets to grow its portfolio in Australia”.
“The metrics of the sale further demonstrate the strong weight of capital actively seeking securely leased assets with a long WALE, especially those leased to government or essential service tenant covenants,” CBRE’s Tom Ryan, Scott Orchard and Kiran Pillai, who brokered the off-market sale, said.
Subscribe to our newsletter at the bottom of this page.