News

Acquisition & development of Melbourne office property announced

27 December 2014

Growthpoint is pleased to announce that it has entered transaction documents for a joint venture between Australand Holdings Limited ("Australand") and Commercial & Industrial Property Pty Ltd ("CIP")(collectively the "Developer") for the acquisition of land and the development of an office building to be located at 211 Wellington Road, Mulgrave, Victoria ("Property").

The property will comprise a seven story office building with a lettable area of 12,718 sqm, together with a multi-deck car park of 650 spaces. The total cost is approximately $62.6 million1, providing an initial income yield of 7.75%2 on completion of development. The building is targeting a 5 star NABERS rating and 5 star Green Star rating and will be 60% leased to major tenant Monash University ("Monash") under a 5 year lease (from practical completion) with two further options of 5 years each.

For further information about the acquisition please download the following PDF document:


Notes

1. Excluding acquistion costs.

2. 7.75% is the base acquisition yield. A lower yield (to a minimum 7.50%) may be payable to the Developer on the rent achieved from letting of the vacant space under the rental guarantee, dependent on tenant quality and lease term.