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.
Previous
Next
The property
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
The investment strategy highlighted the need to:
Invest in a highly rated suburban office with good holding income which has clear medium term “value add potential” as a prime residential redevelopment site.
Purchase this property as it represented rare, unprecedented value. Land and buildings can be acquired at or below current replacement cost which based on sales at the time estimated that it could be acquired at or below the land value at the time.
Undertake minor refurbishment works to lease remaining top-floor space not tenanted. (Building was 53% occupied to Cockram Constructions and Edwise Insurance).
Explore the redevelopment potential for a luxury residential project given the site’s Yarra River south bank location and prime northerly aspect.