658 Church Street, Richmond
Adjacent to the Yarra River’s North Bank, Buildings 1 & 2 at Richmond Corporate Park (Lot 2) was acquired in February 2011 for $42.0 million.
Features at the time of purchase included:
Two A-Grade six floor office buildings constructed in late 1997 with 13,568m2 NLA.
274 car parking spaces on-site.
Securely leased to 7-11, Hardie Grant Publishing, Mattel, Ipsos Australia and Forum Group.
Landmark position on the west side of Church street with excellent access to CityLink Freeway and views to the Melbourne CBD and surrounding suburbs.
The original investment strategy highlighted the need to:
Take advantage of a combination of income from a range of quality tenants
Ensure capital appreciation through future rental growth, active asset management, tenancy remixing.
|Passing Net Income||$2.94 m||$7.13 m|
|Capital returned to date ($)||$20.77 m|
|Capital returned to date (% of original invest.)||87.4%|
|Estimated IRR (5 years) – Post Fees||22.3%|
|Est Project Realisation (12 Lots)|
|Acq’n Price / Current Valuation||$42.0m||$137.7 m|
Achievements and performance to date
Management constructed a new End-of-Trip facility and undertook significant upgrades to the base building, lifts, air conditioning, foyers, amenities and landscaping. This has succeeded in maintaining the building’s status as a modern and desirable A-Grade workplace for existing and future tenants.