The premier office asset in Melbourne’s South East market, Bayside Junction, has been sold for $41.5 million in the largest on-market metropolitan campaign to date in 2015.
Colliers International’s Peter Bremner and Jeremy Gruzewski, in conjunction with Bayley Stuart’s Andrew MacGillivray and Alasdair MacGillivray, have facilitated the sale of Bayside Junction at 973 Nepean Highway in Bentleigh on behalf of JAK Investment Group.
The building has been purchased by Henkell Brothers Investment Managers on behalf of a partnership of European investors. The sale represents a yield of about 8.7%.
“While there has been some notable off-market activity so far this year, this has been the largest on-market metropolitan sales campaign to date in 2015,” Mr Bremner said.
“Bayside Junction has asserted itself as the premier office asset in Melbourne’s South East market and represented an enticing investment proposition.
“The campaign attracted interest from local private investors as well as syndicates and interstate-based national insitutions, before ultimately being purchased by Henkell Brothers Investment Managers on behalf of a partnership of European investors.”
Andrew MacGillivray said Bayside Junction had recently undergone an extensive lobby refurbishment and had welcomed brand new high calibre tenants Alfred Health as an agency for Headspace and Royal District Nursing Services. This was in addition to the Commonwealth Government confirming their commitment to anchor around 50% of the building for another five years.
“The entire 11,956sqm building has been leased or renewed within the past 12 months during what has been a subdued leasing market,” he said. “This illustrates the demand of new entrants wanting to secure tenancies within Bayside Junction and also the commitment of existing tenants to remain for further terms.”
“This underpins the market dominating position that the property holds. Located in a prime South Eastern location, Bayside Junction offered a rare opportunity to make an investment in a recently refurbished and landmark office building in a popular, tightly held bayside suburb.”