Gisborne in focus as office landmark changes hands for $23,170,000

7 December 2022

In a landmark deal, the Nexus Business Centre in Gisborne has been acquired by a private Melbourne investor for $23,170,000.

The prominent property is situated on the edge of outer metro Melbourne, in the Macedon Ranges’ township of Gisborne – a location which has been in the spotlight in recent months after featuring in Channel 9’s The Block.

The CBRE Capital Markets Office team of Scott Orchard and Tom Ryan negotiated the sale on behalf of the private family who developed Nexus Business Centre in 2008 underpinned by a major pre-commitment to AAMI/Suncorp. 

The 7,552sqm asset comprises ground level retail, upper levels of office space and secure carparking and is anchored by an ongoing lease to Suncorp (to house its AAMI Call Centre), the Country Fire Authority (CFA), the Victorian State Government, Bendigo Bank and others. 

Based on the current income, the sale price reflects a passing yield of approximately 7.06%. 

“This is our third $20 million+ office sale in six weeks after a period of investor inactivity mid-year. The string of sales show buyer confidence is improving, and investors are focusing on assets where we can demonstrate strong fundamentals, future growth and upside opportunities, coupled with strong income providing adequate interest coverage to assist with debt support,” Mr Orchard said.

CBRE’s Mr Ryan added, “One common thread between this sale and the others we’ve negotiated in recent weeks is that they have a strong replacement cost story. This is heightening the appeal of certain assets due to ongoing supply chain and increased construction cost challenges.”

While the Nexus Business Centre was a large asset in context to the local market, Mr Ryan noted that the market wide flight to quality trend helped underpin investor interest in the sale campaign.

“We were able to demonstrate how unique and well positioned the property is with no accommodation like it in the region, evidenced by its strong occupancy history,” Mr Ryan said.