Melbourne Government Asset Tipped For Circa $16 Million

An Australian government-backed A-grade asset located in Melbourne’s north east has been listed for sale amid a shortfall of quality investment opportunities in the market.

CBRE’s Mark Wizel, Scott Orchard and Jamus Campbell have been appointed to sell 16-22 Grimshaw Street in Greensborough on behalf of Salta Properties – a 2,892sqm A-grade office building anchored by Centrelink. The property is expected to attract interest over $16 million.

Located on a 1,881sqm site, the near-new building constructed in 2009 comprises three levels of office accommodation and a basement carpark accommodating 93 cars.

CBRE’s Scott Orchard said the property, which generates a total income of approximately $1,260,064 net annually, represented an investment opportunity currently in short supply.

“There is currently a distinct lack of quality investment-grade assets available in the market, which is pushing up demand for income producing office properties underpinned by strong and sought after covenants such as this,” Mr Orchard said.

CBRE’s Jamus Campbell added, “Given the very young age of the property, there is minimal capital expenditure forecast and opportunity for attractive depreciation benefits.”

The property is within the Greensborough Principle Activity Centre and benefits from immediate proximity to Greensborough train station, Main Street retail, Greensborough Plaza, a number of parks and recreation attractions, as well as RMIT and La Trobe University tertiary education campuses located in the same northern Melbourne region.

Mark Wizel, who also forms part of the sale team, mentioned the property offering was the first in its history after being developed, built and managed by Salta Properties.

Sam Tarascio, Managing Director of Salta Properties said, “We believe the Grimshaw St development is an excellent example of the quality property solutions and outcomes Salta Properties delivers to the market and our tenants. Now is an opportune time to bring a high quality building and investment-grade asset to the Greensborough market.”