Archives: Melbourne Middle Markets (Offices)

In 2013 the CBRE Melbourne Middle Markets team was formed to cater for a market sector that was largely underserviced and required a specialised team approach. This has developed into a strategic alliance between agency operators in both the central city and suburban markets.

Our long and highly interactive affiliation with the Melbourne CBD, St Kilda Road, city fringe and suburban office market sectors, positions us strongly to offer experience, knowledge and innovative solutions to achieve premium prices for our clients.

With strong appetite from private investors, funds, institutions, syndicates and offshore buyers, together with historically low borrowing costs and high capital values, there has never been a better time to partner with CBRE to maximise the potential of your office assets.


News Corporation strikes sale and leaseback deal in Blackburn

The long-time Blackburn home of Leader Newspapers has been sold off market for $30,200,000 by parent company News Corporation.

The largely vacant, 1 Chapel Street office building has been acquired by a local fund manager in a deal negotiated by CBRE’s Melbourne Middle Markets team.


Local Asian buyers splash $200m in 10 weeks

The strong Asian interest in Melbourne’s sub $100 million commercial property market remains despite restrictions on off-shore Chinese investors with CBRE selling 19 properties worth just over $200 million to Asia-linked investors since the first week of July.

The purchases, which included an unknown off-shore finance component, were part of an extraordinary ten week period which saw 41 properties sell for more than $570 million including 277 William Street which fetched $93.88 million, 105 York Street South Melbourne, $49 million, and Leader Newspapers’ former Blackburn HQ, $30.2 million.


International buyer goes long on Melbourne office

An offshore Chinese investor has fought off several local and international groups to secure a Burwood East office building for $25.5 million in a record-making result for the Tally-Ho business park.

The buyer – a first time investor in Melbourne’s commercial property market – secured the 12 Lakeside Drive building after an international Expressions of Interest process managed by CBRE Melbourne Middle Markets agents Kiran Pillai, Scott Orchard, Josh Rutman, and Lewis Tong.

It represents the team’s eleventh transaction to a buyer based out of Asia in the space of eight weeks.

Opportunities at every stage of the cycle: Gurner

While the residential market faced numerous headwinds, not the least from the Hayne Royal Commission’s impact on the availability of housing finance, there remained real opportunities in the market, according to Melbourne developer, Tim Gurner.

Speaking at the sixth annual CBRE & Wingate client luncheon at Crown, Mr Gurner told the 450 attendees that there was no doubt the Royal Commission had inadvertently hurt the industry but there were always pockets of the market that would outperform others.


Chinese buyer pays $9.85 million for Hawthorn office

A Chinese investor has fought off a number of local rivals to snatch a Hawthorn office building for $9.85 million on a tight 4.78 per cent yield in an increasingly hot suburban office market.

The auction, through CBRE‘s Mark Wizel, Josh Rutman, Lewis Tong and Scott Orchard, drew a large crowd from which four parties put in 108 bids as the price raced past the former record to post a new building rate record for the area of $13,979 a square metre. The previous record had been the $10,578 a square metre paid for 1 Oxley Road in May.


Mitchell’s Emerald House changes hands

After a comprehensive international sales campaign, high profile advertising identity Harold Mitchell AC has sold his former headquarters in South Melbourne. The property which is fully leased to Denstu Aegis until 2020 was previously occupied by Mitchell’s media company Mitchell Communications Group until it was acquired by Japanese media giant Denstu in 2013.

Affectionately known as Emerald House, the property features a net lettable area of 5,101 sqm, 112 basement car spaces and is one of the few A-Grade office buildings in the South Melbourne commercial precinct which until recently consisted of older style, low rise office accommodation.

It is understood that a range of private and institutional players competed for the asset, with a local private investor paying $49,000,000 and setting a new benchmark for an established office building in the Melbourne city fringe, reflecting a capital value rate of over $9,600/sqm.

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