Financial advisory and investment firm Planum Partners has snapped up the former lonely planet headquarters for $33.11 million in Footscray in an off-market deal.
Planum purchased the commercial property, at 90-96 Maribyrnong Road in Melbourne’s west, from IP Generation, led by Chis Lock who had secured the property in 2015 for $13.5 million.
The four-level building, secured on an initial yield of 6.7 per cent, has a net lettable area of 6,470sq m, and is fully leased with a 6.5-year weighted average lease expiry.
Originally constructed in the 1920s as a woolstore, the former Lonely Planet HQ was converted in 2000 into a commercial space. Lonely Planet operated in the warehouse for 16 years until 2016.
Planum Partners director Sebastian Ugarte described Footscray, located in Melbourne’s burgeoning west, as a “strategic investment location”.
“Due to its proximity to Melbourne’s CBD and major infrastructure upgrades, including the $1.5 billion Footscray Hospital PPP and the West Gate Tunnel Project.”
“The rents are relatively competitive compared to other fringe city locations giving good prospects for capital growth,” Planum Partners’ Managing Director Mario Tritsiniotis said.
Planum, which owns and manages commercial real estate, community infrastructure across Australian and New Zealand operate in real estate, infrastructure and energy sectors.
JLL’s Leigh Melbourne, Nick Rathgeber and Paul Kempton brokered the deal.