Commercial hammer prices: Malaysian family pays $14 million plus for South Melbourne office tower
How much a first-time buyer of commercial property has paid for an office building at 11 Dorcas Street in South Melbourne in an off-market sale negotiated by CBRE’s team of Mark Wizel and Justin Clarkson on behalf of a group of private Melbourne-based investors. The modern five-level office building is fully leased to information technology company Dimension Data. Based on the current passing income the sale reflects a yield around 8.1%. The building was purchased by a Malaysian family who has been keen to secure a Melbourne property for some time. CBRE says the sale of 11 Dorcas Street adds to the ever-growing list of Victorian commercial properties to sell to interests associated with Malaysian, Singaporean or Chinese investors.
The net income generated by a peripheral parcel of Sydney Corporate Park, set to be sold by F.Hannan Properties Pty Ltd in what will be the first investment-grade opportunity in South Sydney this year. The asset comprises two tenanted buildings totalling 8,857 square metres on 13,642 square metres of land. The net income translates to an average of $170 per square metre net. Colliers International’s Michael Crombie and Gavin Bishop are seeking expressions of interest closing September 19, 2012. The last investment sale of this kind was in November 2011, when Dexus paid $76.8 million for the Sir Joseph Banks Corporate Park in Botany.
How much Osrta Cabinets has paid for a 366-square-metre strata warehouse 2/7-11 Brough Street in Springvale in Melbourne’s south-east. The industrial property was purchased from a private investor in a deal negotiated by Jamie Stuart and Sasan Misaghian from Colliers International. The purchaser is expanding and relocating a cabinet-making business from Tullamarine.
The price paid for the property housing the iconic Mary Ryan’s Books, Music and Coffee store in Milton in Brisbane in a deal negotiated by Colliers International. The off-market deal, in which a local private investment company purchased the retail property at 40 Park Road, was struck by agents Jock Murray and Hunter Higgins. The property consists of a circa 700-square-metre building on an 810-square-metre site.
The price paid for a blue-chip investment in Australand’s Checkpoint business park at Banyo, five kilometres west of Brisbane Airport. Anthony White, Colliers International industrial director, handled the transaction on Australand’s behalf for the 746-square-metre industrial strata unit at 11/368 Earnshaw Road. It was snapped up by a private investor from Sydney. The property has been leased to Zip Heaters since the beginning of the year, when it signed a six-year lease with a five-year option. The property returns a net annual rental of just under $160,000, representing a yield of 8.25% for the buyer. As well as the return, White says the buyer was attracted by the solid tenant, the long-term lease in place and the standard of property’s construction.