Growthpoint Property Secures Hawthorns’ Best Mixed Use Development for $125M

Growthpoint Properties has secured the best mixed-use development in Melbourne’s inner east’s suburb of Hawthorn for $125 million on an initial yield of 4.71%.

Completed in 2020, 141 Camberwell Road, in Hawthorn East provides 10,249sqm of Net Lettable Area (NLA) including oversized campus style floorplates, 304 bay car park and 360-degree views across the Melbourne CBD skyline.

With a Weighted Average Lease Expiry (WALE) of 6.9 years, the property was sold by Leigh Melbourne, Nick Rathgeber, Mark Hansen and Josh Cullen of Cushman & Wakefield on behalf of Blueprint Projects.

Leigh Melbourne said “With arguably suburban Melbourne’s strongest tenancy profile including Siemens Healthineers, Cabrini Health and Miele, the area is home to an exceptionally highly educated demographic, with financial, insurance, professional, scientific and technical services the dominant industries.

“Bids were received from both onshore and offshore capital and from REIT’s and private investors, demonstrating a diversification of capital sources.

“The sale was achieved following a competitive expressions of interest process, a strong sign of things ahead for the Melbourne investment market” he continued.

The property boasts excellent connectivity and forms part of the Camberwell Junction shopping precinct; only 600m* from Camberwell Station.

Nick Rathgeber said, “Growthpoint Properties were attracted to the strength of the tenant covenant and the strong WALE providing security of income for the long term”.

Over the past 12 months, Cushman & Wakefield has been the sole exclusive broker for all three sales of new office developments over $100 million, that have occurred in metropolitan Melbourne during 2021.

Alongside 141 Camberwell Road, these include 101 Moray Street, South Melbourne for $205.12 million and 510 Church Street, Cremorne for $130 million (50% stake).

Mr Rathgeber said “These transactions are excellent examples of the Cushman & Wakefield Capital Markets Team’s ability, to utilise our global network to attract national and international capital to the developments of our private clients.

“The success of these campaigns is also a demonstration of the maturation of the Melbourne metro office market, with 510 Church Street being a partial interest sale and 141 Camberwell Road forming part of an Owner’s Corporation.

“For the right quality of development and tenancy profile, there is clearly deep capital for titles of any type” he said.

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