This was published 7 years ago
Funds swoop on suburban offices and warehouse
Fund managers have swooped on two Melbourne properties paying more than $20 million each in separate deals for an Abbotsford office and office-warehouse in Clayton.
Melbourne-based syndicator Terraplex has snapped up a refurbished Yarra River front office at 675 Victoria Street in Abbotsford for about $20 million.
Just over half the building is leased to Construction and Edgewise Insurance Brokers at a combined net annual rental of $698,740.
On a fully let basis the building would return about $1.6 million.
Dawkins Occhiuto's Andrew Dawkins and Walter Occhiuto and Colliers' Peter Bremner and Jeremy Gruzewski brokered the deal. Stuart Bonning of Bonning Property acted for the vendor.
A Terraplex fund was behind last year's purchase of a heritage row of 15 shops in South Melbourne's Clarendon Street for $27.5 million.
Another deal saw Sydney-based Barwon Investment Partners purchase a 27,180-square-metre site at 1868 Dandenong Road to sit within its institutional healthcare property fund.
Colliers International's Adrian Rowse, Tony Iuliano and Justin Fried brokered the property for $20.5 million.
Mr Iuliano said the price reflected a sub 6 per cent return.
The property includes a mix of offices, laboratory and warehouse across two buildings, with a lettable area of 8623 square metres that transacted on a 10-year triple-net lease.
Tenants include Healthscope Pathology and Australian Clinical Labs.
"There was very strong interest in the asset from a variety of investor groups from the time we went to market," Mr Rowse said.