An investment group with Chinese connections has snapped up a prominent office building at 15-17 Prospect Street in Box Hill. The property sold for $12.2 million.
The sale follows the transaction earlier this week of a Whitehorse Road development site with permits for three towers – reflecting the interest from investors in Melbourne suburbs like Box Hill and Glen Waverley.
Situated within the rapidly changing “major development precinct” of Box Hill, the 1305 square metre Prospect Street site is fully occupied by a two-level office building of 2,121 sq m with basement car parking for 60 cars. It is fully leased to global machinery group Cummins for one more year and then presents the opportunity to reposition or totally redevelop the property, with height potential of at least 20 levels.
The property was sold by Clinton Baxter and Nick Peden of Savills, together with Peter Bremner and David Minton of Colliers on behalf of a private investment group that had owned the property for approximately 10 years.
Savills' Clinton Baxter said the property had proved extremely popular with local and Asia-based developers and investors seeking to secure a strategic landholding in central Box Hill, one of Melbourne’s most rapidly evolving suburban locations, pushing the land rate to $9,350 per square metre.
"Box Hill is undergoing an explosive transformation, with major landholdings rapidly rising in value as developers scramble to secure suitable sites throughout the suburb to respond to the enormous demand for apartments close to Box Hill Central,” Baxter said.
Colliers' Peter Bremner said, "The property was sold with the benefit of a short-term lease to Cummins to provide developers with an income stream whilst preparing proposals for a future mixed-use project. However, the property has been purchased by a group of investors wishing to continue to hold and lease the building as a highly strategic land bank, rather than develop immediately.”