Richmond Office Towers Sales Tipped to Top $120m

Developer Garda Property Group has listed two of its Botanicca Corporate Park buildings with an expected combined price of more than $120 million.

The developer plans to sell Buildings 7 (Botanicca 7) and 9 (Botanicca 9) within the precinct on Swan Street, Richmond.

Botanicca 7 has six storeys with 6587sq m of space while the new Botanicca 9 has 6960sq m also over six storeys.

Botanicca 7 has a strong four-year WALE and is 100 per cent leased with multi-national tenants including Golder Associates and Fulton Hogan. It has a passing net income of about $3.3 million a year.

Botanicca 9 has long-term leases with tenants Fujifilm, Servier Pharmaceuticals and NuVasive Inc. It has an estimated fully leased net income of about $3.9 million a year.

Garda Property Group’s managing director, Matthew Madsen, said Garda wanted to continue with its strategy of developing projects to sell and then reinvesting that capital into other projects.

“Garda, as it has done previously, is divesting these assets to recycle capital into the delivery of our 160,000sq m industrial pipeline in Brisbane,” Madsen said.

▲ Botanicca 7 has a strong four-year WALE and is 100 per cent leased.

Botanicca Corporate Park is on a stretch of the Yarra River bank that separates Richmond and Hawthorn with major corporate occupiers and tenants including Bunnings, David Jones, Country Road and Mitsubishi.

The international expressions of interest campaign is being run by CBRE’s Scott Orchard and Tom Ryan with Dawkins Occhiuto’s Andrew Dawkins and Tim Grant.

Orchard said, “Melbourne’s city fringe office market has shown incredible resilience over the past few years and leasing activity has defied expectations”. 

“This rare portfolio sale gives buyers a choice of two exceptional office investments or the opportunity to double down in a location that is hyper-connected to Melbourne’s freeway and public transport network and endorsed by many corporate heavyweights.”

Dawkins, who is Dawkins Occhiuto’s managing director, said potential buyers would be keen on the lease profile and diverse income stream.

“Both buildings are defensive assets which are positioned to capitalise on periodic rental growth opportunities,” he said. 

“A strong environmental focus from inception means both buildings offer 5-star NABERS energy ratings and buyers will also have access to attractive depreciation benefits, which will complement returns.”

The buildings can be bought separately or together and expressions of interest close on September 15.

Office investment in Melbourne’s CBD fringe suburbs has heated up this year with many choosing to invest and build in Richmond, Cremorne and neighbouring suburbs.

Most recently, Vicland revealed plans for an office project in Cremorne while Growthpoint dropped $125 million on office space.