The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
2
print
Print
OtherLindsay SaundersFri 20 May 22

Frasers Spends $60m on Melbourne Office Block

The five-storey, A-grade office building at 545 Blackburn Road, Mount Waverley has a total net lettable area of 7297 square metres.

Frasers has snapped up a metropolitan office development in Melbourne, paying more than $60 million to acquire the property from its developers.

The five-storey, A-grade office building at 545 Blackburn Road, Mount Waverley has a total net lettable area of 7300 square metres. 

It is fully leased to nine tenants with a weighted average lease expiry of approximately five years.

In one of the first major metropolitan office buildings to be offered publicly in the Victorian capital this year, the international logistics and commercial manager paid $60.25 million to aquire the building from its developers, a small syndicate which included founding members of carsales.com. 

CBRE Capital Markets Office’s Scott Orchard and Tom Ryan negotiated the sale.

Orchard said the result, and underbidder interest, was “testament to the overall quality of the asset”, which is in Melbourne’s south-east, near Monash University.

“The strong result sets a new benchmark for the suburban market for an existing multi-tenanted office investment,” Orchard said.

“Despite the rising cost of debt, there is still motivated capital aggressively pursuing quality investments with the right location, improvement and tenant profile story.

Ryan said they had taken “an aggressive position with the asset from a price potential perspective, believing that the property matched other opportunities of this quality and price point in Melbourne’s city fringe market”.

This had generated broad local, interstate and international buyer interest, Ryan said, with Frasers Logistics and Commercial Trust securing the property after a competitive second round of offers.

The five-storey, A-grade office building at 545 Blackburn Road, Mount Waverley.
▲ The five-storey, A-grade office building at 545 Blackburn Road, Mount Waverley.

Chief executive of the REIT Robert Wallace said the acquisition aligned with Frasers’ strategy to pursue strategic opportunities that provided attractive yields and enabled them to leverage their management expertise in Australia.

“With the property 100 per cent leased to reputable tenants in diverse industries, this acquisition is expected to further enhance FLCT’s quality tenant mix and portfolio metrics, while providing unit holders with a stable income stream,” he said.

Vendor syndicate chief executive Lee Mayberry said they had had a long-term hold intention for the property ‘which is why it was built to such a high-quality specification’.

“Our patience enabled us to put together an equally high-quality tenancy profile, with the building attracting occupiers mostly from the local area,” he said.

“However, a number of factors aligned making it more suitable for a passive owner over the next period of the asset’s life.”

After prolonged pandemic-induced lockdowns laid it low, Melbourne’s office sector has staged a remarkable recovery this year, with rent rises outpacing Sydney and Brisbane earlier this year.

Investment has followed the recovery— Growthpoint Properties in March paid $125 million for a Hawthorn East property while last month Fortis secured planning approval for its eight-storey South Melbourne office project with an estimated end value of $50 million.

OtherOfficeMelbourneAustraliaSector
AUTHOR
Lindsay Saunders
The Urban Developer - News Editor
More articles by this author
linkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
First projects named in a statewide plan to fast-track supply, including thousands of homes in a major growth region…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/frasers-makes-aud60m-spend-on-melbourne-office-block