$30 million Richmond office offering
Record low interest rates and a scarcity of inner city commercial properties with development potential are expected to drive strong interest in a prominent Richmond office building.
Colliers International’s Peter Bremner, Rob Joyes and Leigh Melbourne have been appointed to sell 180-188 Burnley Street in Richmond.
The three-level commercial building is expected to generate interest in excess of $30million.
“180-188 Burnley Street offers investors a secure long term cash flow from AAPT Limited, Australia's third largest land line telecommunications company owned by ASX-listed TPG Telecom Limited,” Mr Bremner said.
“The property also has significant underlying land value, as a rare inner city parcel of land with three street frontages and a total site area of just under 5,000sqm.
The three-level office building and data centre has a total net lettable area of 5,557.4sqm and includes a full sized basement, a ground floor mostly containing data centre space and associated plant and equipment and a first floor with bright, open plan office accommodation and staff amenities.
The property is fully leased to AAPT Limited until June 28, 2022, with a current net rent of approximately $2,262,791 per annum.
“AAPT previously owned the property as an owner-occupier from 2001 through to 2005, at which point they sold the property on a long sale-and-leaseback,” Mr Joyes said.
“This premise is one of AAPT and TPG Telecom's major telecommunications hubs for Melbourne. The facility is an important site that aggregates and provides internet, data and telephone services for a wide geographic area.
“One of the main reasons AAPT originally chose this specific building and location was due to the fact that the site has high capacity fibre optic connectivity to all major telecommunication networks. A range of large corporations have a presence in the data centre and Richmond is a very central accessible location.”
180-188 Burnley Street is located less than 40metre from Bridge Road, some 5.5km east of the Melbourne CBD.
The property is for sale by expressions of interest closing September 25.