Major off-the-plan office transaction completed
Cedar Woods has completed the $25.93 million sale of the new Emergency Communications Facility in Williams Landing.
The pre-sale of the 107 Overton Road asset to Hellenic Property Investments was steered by CBRE Melbourne Middle Markets agents Scott Orchard, Lewis Tong, Mark Wizel and Josh Rutman, with Hellenic represented by JGS Property.
The transaction was settled following the recent completion of the 3,126sqm office building, which is leased to the Victorian State Government, with the final price reflecting a sharp metropolitan office yield of 5.4% and over $8,000/sqm on the net lettable building area.
Mr Orchard said off-the-plan and fund-through sales had become increasingly popular in recent years due to a lack of available investment grade office product, coupled with the desire by developers to lock in funding arrangements.
“This is one of the first major, off-the-plan office deals to be completed in this current construction cycle which is very significant for the market’s confidence in the sector,” Mr Orchard said.
“Investors have made clear their intentions to focus on properties with sound fundamentals and we are already experiencing a ‘flight to quality’ where well-located assets with reliable income streams are keenly sought.”
CBRE’s Mr Tong added; “With interest rates at record lows and the falling Australian dollar making domestic real estate highly attractive to foreign purchasers, we expect to see several investment opportunities emerge in the coming months.”
Other Melbourne deals struck with tenant pre-commitments in place include:
- 51 Langridge Street, Collingwood – Pace Development Group
- 500 Church Street, Richmond – Icon Construction
- 17-21 Harcourt Parade, Cremorne – Caydon Development Group
- 254 Wellington Road, Mulgrave – Frasers & ESR
- 54 Wellington Street, Collingwood – Grocon