Cato Street Office Fund
Cato Street, Hawthorn East
A modern office building built in 2009, the property was purchased in 2017 for $24.7 million.
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The property
Features of the property at the time of purchase included:
Strategic location in the Cato Street Business District with close direct access to Monash Freeway/Citylink with 5,295 m2 NLA
Securely leased to Bunnings Group Ltd with a 3.2 year WALE (remaining) and growing distribution yield.
Proximity to two Tooronga Shopping precincts and walking distance to Tooronga Train Station.
The investment
The investment strategy highlighted the need to:
- Consider that the rent for building is significantly below market. This allows for significant rent reversion and value capture to be gained in the future under a new lease.
Once market rents are achieved at time of new commencement, the building provides excellent potential for presentation for sale.
| Investment Summary | $ |
|---|---|
| Address | 18 Cato Street, Hawthorn East |
| Acqn Date | 28 Feb 2017 |
| Lettable Area | 5,295 m2 |
| Passing Net Income | $1.48 M pa |
| Purchase Price | $24.70 M |
| Current Valuation | $31.00 M |
| Equity Raised | $11.98 M |
| Capital Returned | $1.1 M |
