The property comprises two storeys of office accommodation with 3,361 m2 NLA that has been sub-divided into 19 lots with an average area of 175 m2 per unit and secure ground floor with basement car parking providing for 112 car spaces.
Investment strategy: An opportunity to capture significant rent reversion and value gains when leases expire given the below market passing rents. Also to assess further re-development potential (STCA) as the property’s location and significant site area and zoning provides opportunity to add more office space on balcony areas and on the roof.
Asset management initiatives include obtaining Development Approval for the construction of two additional levels on the roof adding 2,140 m2 (68% increase) of additional office space. The Permit has added significant value to the property. The redevelopment works are on hold until construction costs stabilise.
Purchase Price / Date
$19.0m / June 2019
$22.7m / July 2021
Estimated IRR to date:
6.00% per annum