785-789 Toorak Road, Hawthorn East
This property has two storeys of high quality refurbished office accommodation was constructed in 1999 and purchased in November 2017 for a private client for $24.65 Million. Terraplex are acting as Trustee and Asset Manager of the Fund.
Features of the property at the time of purchase included:
An office building with 4,006 m2 NLA (Site area 3,042 m2).
Seven tenants with varying lease expiries and a 1.9 year WALE (by income) which provides a secure cash flow and risk diversity against major vacancy.
Large efficient floor plates of up to 1,056 m2
A secure ground floor/basement car park provides 123 car parking spaces.
Located metres from the Toorak Road and M1 Freeway diamond interchange, 7 kilometres east of the Melbourne CBD (approx.).
The investment strategy highlighted the need to:
Invest in a commercial building with good holding income with clear long term “value add potential” as a prime residential redevelopment site that already has a high NABERS rating of 4.5 stars and minimal capital expenditure requirements.
Assess the modern building’s flexible design which allows for future remixing.
Explore future Re-Development Potential (STCA) given the property’s location, significant site area and flexible Mixed Use Zoning which allows for usage such as residential.
Consider rents which are well below market and have potential for rent revision and value capture when leases expire.
|Performance to date|
|Address||785 Toorak Rd, Hawthorn East|
|Acqn Date||20 November 2017|
|Lettable Area||4,006 m2|
|Passing Net Income (at Acqn)||$1.35 M pa|
|Passing Net Income (Current)||$1.57 M pa|
|Purchase Price||$24.65 M|
|Current Valuation||$30.00 M|
|Equity Raised||$11.98 M|
|Capital Returned||$1.88 M|