Investment continues in Forest Hill with $45.85m office sale

Colliers International negotiates largest metro office investment to date in 2019

An adjoining owner has snapped up a significant office property in Forest Hill for $45.85million as demand for commercial assets in metropolitan Melbourne continues. 

Colliers International’s Rob Joyes, Peter Bremner and Rachael Clohesy have negotiated the sale of 347-351 Burwood Highway in Forest Hill on behalf of a long-term Sydney based private investor. 

The 2.62ha Commercial 1-zoned site, which is home to two office buildings with a combined net lettable area of approximately 10,692sqm, changed hands on a passing yield of circa 4%.The property was purchased by an offshore investor. 

“This purchase also represents the largest metropolitan office investment to transact so far in 2019,” Mr Bremner said.

The property was approximately 70% occupied at the time of sale with a weighted average lease expiry of approximately 3.4 years

“Over the past two years, over $180million of office investments have transacted within the Tally Ho Business Park precinct,” Mr Joyes said.

“Office investors are taking a long-term view of the Outer East market with a particular interest in land with existing Zoning flexibility and are anticipating  land values will increase significantly in the years to come off the back of State Government investment such as the Suburban Rail Loop and Vicinity’s transformation of The Glen shopping precinct.”

The Outer East office market has bounced back after a period of high vacancy. 

Colliers International’s latest Metro Office Research & Forecast Report states that vacancy is currently at 8.74% in the Outer East, which is below the long-term average of 9.56%. 

“Due to the tightening of vacancy in the City Fringe and Inner East markets, tenants view the Outer East as a more affordable option,” Mr Joyes said. 

Significant recent sales within the precinct include 
- VicRoads, 12 Lakeside Drive, Burwood East - $25.5 million
- Hewlett Packard, 353 Burwood Highway, Forest Hill - $88 million 
- CFA, 16 Lakeside Drive, Burwood East - $9.6 million
- CFA, 8 Lakeside Drive, Burwood East - $18.08 million 

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Rob Joyes

Director In Charge | Melbourne East & National Director

Melbourne East

Over the last sixteen years Rob has built an arguable and enviable reputation as the most dominant agent in the Melbourne Metropolitan office market, specialising in major project leasing and development sites.

Rob's unique perspective combines specialized experience and knowledge with a creative, solutions-driven approach to understanding and fulfilling his client needs. He has built strong relationships, delivered results and become a trusted advisor to some of the most prominent local and national investors and occupiers.

Since 2008 alone, Rob has sold $450 million in value of development sites and commercial investments and leased approximately 190,000sqm on behalf of Stockland, Australand, Investa, Goodman, Colonial First State Property and Salta Properties. In 2013 he assisted corporate clients with their accommodation needs including Pacific Brands, Country Road, The Good Guys, United Energy, Woolworths and GE.

Rob also leads a team of more than 30 professionals in the Colliers International Melbourne East business, offering a full range of specialist services including sales, leasing, valuations and property management in the office, industrial, retail and residential sectors.

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Peter Bremner

National Director | Melbourne Metro Sales

Melbourne East

Peter has a total of 25+ years’ experience in the commercial real estate industry including over 23 years with Colliers International. 

He started his real estate career as a Valuer in 1991 at the City of Nunawading and obtained his qualification as a Valuer in 1993.

Peter joined Colliers International in June 1993 and commenced as an Assistant Valuer.  From 1994 - 1997, he concentrated on retail & industrial sales and leasing in Melbourne's south-eastern suburbs. 

Peter joined the Commercial & Investment Sales department at the start of 1998 to specialise in the sale of metropolitan office investments, commercial and residential development sites and vacant possession office sales. Peter’s track record for Melbourne city fringe and metropolitan office investment sales between $10 million - $80 million is unrivalled.

He was appointed National Director of the Investment Sales Department, Eastern Office in mid-2012.

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Rachael Clohesy

Associate Director | Capital Markets

Melbourne East

I work closely with a specialised team of senior, industry leading professionals focused on servicing the Australian Capital Markets sector of the Investment Property industry. I am actively involved in the campaign life-cycle, researching the property investment market, provision of financial / cash flow modelling for major commercial properties, providing market intelligence to support the compilation of submissions and production of information memorandums, coordinating comprehensive financial and technical due diligence and assists in handling associated enquiries during campaigns.

Prior to working as an Analyst in the Capital Markets team, I was a Certified Practising Valuer at Urbis and Colliers International for 5 years. I primarily valued industrial and commercial assets for a wide range of institutional clients including Frasers Property, Charter Hall, Growthpoint and Goodman.

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