Sydney-based private investor Rathdrum Properties snapped up a seven-level building in the tightly held Cremorne office precinct in the final days before Christmas for $41.5million.
In a deal facilitated by Colliers’ Peter Bremner, Rachael Clohesy and Alex Browne, in conjunction with Adrian Boutsakis and Luke Bisset of Teska Carson, Roche Holdings has sold the recently completed building at 2-6 Gwynne Street on a 4.79% yield.
“Rathdrum Properties is delighted to have been able to secure the recently completely building with great facilities and local amenity,” Rathdrum Properties’ Richard O’Connor said. “It provides a solid platform to extend our office portfolio into Melbourne. We look forward to seeing the continued growth and demand in the fringe markets.”
Nick Roche, Director of Roche Holdings, said the family-owned company had numerous sites in the Cremorne area at various stages of planning approval.
“With several projects on the drawing board for Roche Holdings to be constructed and given the strength of the city fringe office market, the family felt the timing was right to sell this asset in a market starved of good quality investment offerings,” Mr Roche said.
Mr Bremner said 2-6 Gwynne Street attracted keen interest from a range of buyer groups including private investors, syndicates, institutions and offshore groups.
“With yields in prime city fringe markets like Cremorne now below 5% and capital value rates for brand new office buildings ranging from $12,000-$13,000/sqm, this is one of the most hotly contested markets in Melbourne and this recently completed building was highly sought after,” he said.
Ms Clohesy said strong leasing activity and a consistently high calibre of occupiers in the Cremorne precinct had further enhanced the appeal of the property to a wide range of buyers.
“510 Church Street was recently leased to Monash IVF, NDIS and Dentsu, and other big name surrounding tenants include Seek, Reece, MYOB, Carsales, Uber, Walt Disney Company and 7-Eleven,” she said.
“These tenants have all been attracted to the outstanding location and accessiblity that Cremorne offers, including proximity to Richmond Train Station, retail amenity along Swan Street and Citilink.”
Mr Boutsakis said potential buyers were taken by the quality design of the building, amazing views and proximity to the Melbourne CBD. “The aspects and views from each floor are some of the most amazing in Melbourne, so it’s little surprise that this property attracted significant interest from potential buyers,” he said.
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