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.
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 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.
|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|