ISPT has acquired Country Fire Authority headquarters in Burwood East, Vic for $35.8m.
Located at 8 Lakeside Drive, the property is a standalone three-level office building of 4,552 sqm in Tally Ho Business Park, approximately 17 km east of the Melbourne CBD. The property is fully leased to the CFA and Telstra with a WALE of just over 9 years.
The vendor, Tong Eng Group, paid just $18m for the property in 2017 which reflected a 9.4% passing yield
The acquisition by ISPT reflects a yield of 4.7% and sets a new price benchmark for the Tally Ho Business Park.
Georgina Bishop, ISPT CIB Fund & Sunsuper Australian Mandate Manager said, “The acquisition of 8 Lakeside Drive, Burwood East aligns with the ISPT CIB Fund investment strategy to strengthen income security and tenancy profile. This is the Fund’s first acquisition in 20 years and our first step to growing the portfolio as its new investment manager, while creating enhanced value for our Investors.”
ISPT assumed trusteeship and management of CIB Fund in November 2020, formerly managed by Charter Hall. The Fund has a portfolio of Victorian law courts and police stations valued at circa $155 million as at 30 September 2021.
CBRE’s Tom Ryan and Scott Orchard managed the off-market sale campaign on behalf of TE Capital Partners.
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