IOOF Holdings Limited has found two tenants to occupy a third of its Sero office in Melbourne’s Hawthorn.
In the biggest deal, New Zealand based technology company Xero has leased 1143 square metres, being the third floor of 108 Power Street.
It will join high-end residential builder Henny which has recently moved into 240 sqm on level one.
The Premium graded Sero was developed by LAS Group, directed by Les Smith, nine years ago.
The same developer was responsible for the swank fit out of a Richmond warehouse at 5 Stewart Street which sold in 2018 for $4.1 million and later leased to Sony Music as its local headquarters.
Sero was 58 per cent vacant until these deals
One of the tallest buildings in the area when it was built – at four storeys – Sero is renowned for its excellent natural light and north facing aspect over adjoining sunken train lines between Hawthorn and Glenferrie stations.
Near the Burwood Road intersection, it offers 4300 sqm of lettable office space, a balcony, ground floor retail and basement car park.
LAS Group secured some high-profile tenants – amongst them Roche Pharmaceutical, Ragg Weir Accountants (which later became MSI Ragg Weir then merged with Morrows Corporate) and AV Jennings – prior to offering 108 Power Street for sale in 2011.
IOOF Holdings picked it up for about $18 million which, based on the $1.5 million annual rental return, reflected an c8.3 per cent yield.
Colliers International and JLL marketed the office for sale then.
The same agencies are managing a campaign to rent the vacant sections, now.
IOOF recently undertook a major upgrade of the Hawthorn building’s entrance foyer.
It has just one space to fill – 1117 sqm being the second floor, to flatten what was an office vacancy rate of 58 per cent.
Hawthorn is about 6.5 kilometres east of the CBD.