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.


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$
Address18 Cato Street, Hawthorn East
Acqn Date28 Feb 2017
Lettable Area5,295 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