Chinese-backed developer Poly Holdings has settled on two mid-rise office buildings in Forest Hill, in one of Melbourne’s largest metropolitan sales for the year.
The $45.85 million deal was struck on a passing yield of about 4 per cent.
The 2.62-hectare office park, which is commercial 1- zoned, offers a net lettable area of 10,692sq m and is 70 per cent leased.
The sale was brokered by Colliers International agents Rachael Clohesy, Rob Joyes and Peter Bremner.
Poly Holdings acquired a neighbouring property from computing giant Hewlett Packard on a similarly tight yield of 3.6 per cent last year for $88 million.
Tightening vacancy rates in Melbourne’s CBD and fringe markets are driving activity around suburban office parks, with vacancy rates falling to under 9 per cent in Melbourne’s outer east.
Developer confidence in Melbourne’s suburban office sector is growing, buoyed by an $18 billion increase — 20.5 per cent — in government infrastructure investment over the last year.
“Over the past two years, over $180 million of office investments have transacted within the Tally Ho Business Park precinct.”
Other transactions in the precinct include 8 Lakeside Drive and 12 Lakeside Drive, Burwood East, which sold for $18.08 million and $25.5 million respectively.