675 Victoria Street, Abbotsford
This three-level office building constructed in 1987 was purchased for a private client in February 2017 for $20.4 Million. Terraplex are acting as Trustee and Asset Manager of the Fund.
Features at the time of purchase included:
Three levels of office accommodation comprising of 3,747m2 NLA (Site area 3,459 m2).
Large efficient floor plates of up to 1,739m2
Two levels of basement car parking excellent parking ratio.
North facing Yarra River edge location in a secluded corner of Abbotsford, adjacent to Victoria Gardens Shopping Centre, Kew Parklands only 4.5kms from Melbourne’s CBD.
The investment outcome
The investment strategy identified at purchase highlighted the opportunity to undertake minor refurbishment works to lease up the first floor space that was vacant (46% of NLA). We also sought to explore the redevelopment potential for a luxury residential project given the site’s Yarra River south bank location and prime northerly aspect.
Whilst in the early stages of considering the redevelopment potential asset, Terraplex received an unsolicited offer to sell the building. The very strong offer was accepted resulting in a 34% gain on the purchase price.
|Performance to date|
|Purchase Price / Date||$20.4m / Feb 2017|
|Selling Price / Date||$27.3m / June 2021|
|Investment IRR - Post Fees||13.0%|