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Beams Projects Offloads New Office for $19.5m

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Beams Projects has sold its new office development in Melbourne’s fringe to a Hong Kong-based investor for $19.5 million.

Sold on a 3.7 per cent yield, the boutique office building at 45 Wangaratta Street, Richmond, in the less-established commercial precinct outside Cremorne.

The property sits on a 368sq m site which was developed by Beams Projects last year to create a seven-storey office building, wich was designed by MAArchitects.

In 2016, seven-storey residential building was planned for the site, once home to the Duchamp warehouse, but this was changed to commercial use two years later.

The sale translates to a building rate of $13,829 per sq m and a land rate of $53,100 per sq m, which has set new pricing benchmarks for the city fringe office investment market.

Richmond and Cremorne office transactions

AddressSale DatePriceNLANLA Rate $/sq m
45 Wangaratta St, RichmondMay 2021$19.5m1413sq m$13,829
675 Victoria St, AbbotsfordMay 2021$27.3m3747sq m$7,286
182-184 Stawell St, BurnleyMay 2021$14.5m1750sq m$8,286
115 Sackville St, CollingwoodFeb 2021$7.5m731sq m$10,260
11-23 Burwood Rd, HawthornJan 2021$17.5m2403sq m$7,282
384-388 Albert St, East MelbourneJan 2021circa $12m885c. $13,500
20-30 Mollison St, AbbotsfordDec 2020$86m 10,000$8,600

^Source: JLL, past six months

The office is in the Richmond interchange precinct near the train station and 350m from Punt Road.

It was sold in a competitive expressions-of-interest campaign that generated more than 150 enquires through JLL’s Josh Rutman, and Tim Carr and MingXuan Li.

Related: Bunnings Sets Up Headquarters in Richmond

A seven-storey concrete office building in Richmond and an aerial image of the site near the train station and Punt Road.
▲ The modern, boutique office building was sold to a Hong Kong-based investor. Images: MAArchitecture, Nearmap


Carr said just four major transactions had taken place in the precinct during the past five years.

“The fact the building continued to lease well during the height of pandemic last year resonated well with buyers, given the continued debate about the return to the workplace and what future levels of demand for office space will be,” Carr said.

There have been a number of development applications for offices around Melbourne's fringe, particularly in the City of Yarra.

The suburb of Richmond has also attracted tenants including Bunnings, who plan to set up its headquarters in Growthpoint Properties Australia's new Botanicca 3 building.

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Article originally posted at: https://www.theurbandeveloper.com/articles/beams-projects-office-richmond-hong-kong