News

Acquisition of $166 million fully-leased Victorian office building

20 June 2016

Growthpoint Properties Australia ("Growthpoint") is pleased to announce that it has entered transaction documents for the acquisition of 75 Dorcas Street, South Melbourne, Victoria ("Property") for $166 million. Settlement is due to occur within five business days.

The Property is 100% leased to several tenants including ANZ Bank (57.7% of net lettable area), Mondelez (19.2%) and BMW (15.4%) with a remaining weighted average lease expiry of 5.0 years1 providing an initial yield of 6.6%. The leases have a weighted average fixed rent review of 3.8%1.

The property

The property comprises an 11 level A-grade office, showroom and car park building with a net lettable area ("NLA") of 23,811 square metres and 690 car parks on 9,632 square metres of land. The property was constructed in 2002 and partly refurbished in 2015.

The purchase price is $166,000,000 providing a forecast FY17 income yield of 6.8%. Savills has independently valued the Property at the purchase price.

The Property has a 3.5 star NABERS energy rating.

The Property is located in South Melbourne, approximately two kilometres south of Melbourne's Central Business District and 400 metres west of St Kilda Road. The Property forms part of Melbourne's city fringe office market of approximately 1.2 million square metres which includes the Docklands, Southbank and St Kilda Road precincts and has an A-grade vacancy rate of 6.7%2, which is lower than most of Australia's capital cities.

To find out more download the full ASX Announcement.

 


Notes

  1. Weighted by income.
  2. At January 2016. Source: Savills Research.