RMIT office at MAB’s University Hill to fetch $25 million

RMIT office at MAB’s University Hill to fetch $25 million
RMIT office at MAB’s University Hill to fetch $25 million

A near new office building leased to RMIT and the Royal District Nursing Service (RDNS) in the University Hill development in Melbourne’s northern perimeter has been listed with expectations of $25 million.

The property comes to the market at a time when office market investment activity in suburban Melbourne has reached an all-time high.

The 30 Janefield Drive property will be sold by expressions of interest closing November 2.

Located at the corner of Princeton Terrace, the property comprises a modern, virtually new office building with net lettable area of 3,960 sqm over four levels, including ground floor retail, on a 5,748 sqm site.

Melbourne has recorded its highest annual net absorption level since 2010 with total suburban office vacancy at an historically tight 7 per cent, said Andrew Dawkins of Dawkins Occhiuto, who along with colleagues Chris Jones and Walter Occhiuto is marketing the property along with Tim Grant and Tom Ryan of Knight Frank.

“Demand from domestic unlisted funds and syndicates, along with an increasing level of interest from off-shore buyers, has, for a third consecutive year, put suburban office market investment in Melbourne into record territory,” said Dawkins.

The property comes with a blue-chip tenancy profile including RMIT University and the Royal District Nursing Service (RDNS) accounting for 81 per cent of the income, and five separate retail tenancies, at a current net passing income of $1.59 million per annum with a weighted average lease expiry of nine years.

Knight Frank’s Grant said the tenancy profile included the ‘make good’ requirement that both RMIT and RDNS reinstate any alteration and remove fitout, replace carpets and floor linings and repaint all internal surfaces to the lessor’s satisfaction.

“This is an exceptional tenancy profile backed by a make good clause that presents purchasers with the most passive of investments,’’ Grant said.

He said an additional and not insignificant feature of the property was the sizeable allotment with two street frontages, which offered the potential for further development subject to council approval.

The building was completed in January 2015 and presents buyers with strong depreciation allowances and low anticipated future capital expenditure.

The property is close to the Metropolitan Ring Road via Plenty Road providing easy access to both Melbourne CBD and Tullamarine Airport, the 4 star energy, water and waste rating design, and the strong projected growth of University Hill.

University Hill benefits from its location at the foot of one of Melbourne’s most rapidly growing municipalities – the City of Whittlesea  - which has a current estimated population of 209,118 that is forecast to grow to 379,342 by 2041.

The $1 billion 104 hectare, park is expected to accommodate 3,000 residents and 4,000 jobs together with the 155 businesses within the 30,000 sqm commercial precinct.

 

 

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Melbourne Office Sales

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