Singaporean real estate investment trust Ascendas has made a $100 million-plus play scooping up a suburban office building in Melbourne’s outer-east from joint venture partners Frasers Property and ESR.
The eight-level building, currently under construction and due for completion mid-2020, is in the first stage of the larger business park development in Melbourne’s south-east suburb Mulgrave.
The first stage will comprise 17,393sq m of office space, with car manufacturer Nissan to occupy 11,000sq m for its national headquarters.
The larger 4.67-hectare site has received planning approval for 60,000sq m of commercial, and 2,497sq m of retail and car space, as part of plans for a $400 million business park.
The entire development is slated for completion by around late 2025.
Frasers Property’s Anthony Maugeri said the divestment forms part of Frasers on-going capital management program in Melbourne.
“We are pleased to secure a strong result for our first asset prior to practical completion,” Maugeri said.
Frasers and ESR previously developed 211 Wellington Road, a $51 million office project comprising 10,159sq m across five storeys.
ESR Australia chief executive Phil Pearce said the company would now focus on the next three phases of development of the 254 Wellington Road site.
CBRE and JLL managed the Ascendas transaction.