The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterTue 20 Dec 16

Premier Office Building Sparks Investor Contest At Tally Ho Business Park

10-Wesley-Court-Burwood-East_620x380

A securely tenanted office building at Tally Ho Business Park in Melbourne’s east has sold for $19.55 million, reflecting a yield of 6.97 per cent based on the passing income.

A private investor is the new owner of 10 Wesley Court, Burwood East, following an expressions-of-interest campaign managed by Fitzroys’ Paul Burns and Michael Ryan, in conjunction with Colliers International’s Peter Bremner and Rob Joyes.

Underpinning the passive investment value of the property is a significant 8,444 square metre parcel of land with a Commercial 1 zoning.

Mr Burns said the commercial asset attracted extensive purchaser interest and multiple competitive bids.

“Investors were attracted to the quality of the building and tenants,” he said.

“Bidders were a mix of local and offshore investors, however a higher than normal percentage of the bidders were Chinese.

“This reflects the proximity to Box Hill, where many Chinese investors would like to buy but have been unable to secure a holding. Consequently, these buyers have been willing to buy in established commercial markets nearby.”

Mr Bremner said the outer eastern office leasing market was beginning to show signs of recovery.

“Reducing supply of office accommodation in the inner east and CBD fringe, together with a steady improvement in user demand, has resulted in signs of improvement in rental levels and promise of even greater growth over time,” he said.

Mr Burns said developers tended to see more value in medium-density residential projects than low-rise office buildings so office buildings were being withdrawn from the market.

“Strong buyer interest exists for office buildings which can be seen as potential ‘landbank’ opportunities and buyers are positioning themselves for the continuation of this phenomenon in the future,” he said.

“As a result, medium-aged office buildings on land-rich parcels and in preferred places to live are highly sought after.”

Peter Bremner said investors had been “screaming out all year” for quality stock to come to the market in the $10 million to $30 million range.

“While stock offered for sale during 2016 has been limited, there are plenty of buyers keen to purchase modern assets in well-recognised core suburban office markets, especially leased to long-standing high-calibre tenants like Motorola.”

ResidentialOfficeAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
View All >
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
Deicorp Five Dock Mixed-Use Precinct
Residential

Deicorp’s $1.8bn Inner-West Sydney Precinct Greenlit

Vanessa Croll
Kings Bay Village in Five Dock has become the first private project to advance under NSW's Parramatta Road renewal strat…
LATEST
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
4 Min
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
3 Min
Deicorp Five Dock Mixed-Use Precinct
Residential

Deicorp’s $1.8bn Inner-West Sydney Precinct Greenlit

Vanessa Croll
3 Min
Old Canberra Brickworks Yarralumla
Development

Doma Ready to Begin 380-Home ACT Brickworks Scheme

Leon Della Bosca
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/premier-office-building-sparks-investor-contest-tally-ho-business-park