A prominent Burwood East office building has sold for $6.8 million amidst a flurry of activity which has seen almost half the buildings in the Tally Ho Business Park changing hands in the past two years.
Colliers International’s Peter Bremner has introduced a private Malaysian investor who snapped up 6 Lakeside Drive on a yield of 6.86 per cent, in a conjunctional sale with MP Burke Commercial directors Pat Burke and Michael Pound.
The property, which is 100 per cent leased to the Melbourne East General Practise Network Ltd, is a prominent, two-level office building of approximately 1,526sqm, situated on a 3,367sqm site fronting both Lakeside Drive and Burwood Highway and offered with 51 car parks.
Mr Bremner said it was the seventh of 15 office buildings to have sold within Tally Ho Business Park in the last two years.
“These sales have totalled $63 million with yields ranging from 6.85 per cent to 9 per cent, dependent on lease profile,” Mr Bremner said. “The majority of buyers have been local private investors and Colliers International has negotiated three of these recent sales.
“This modern, freestanding building at 6 Lakeside Drive represented a prime investment located in a well-established corporate park in Melbourne’s sought after inner east."
Mr Burke said: “6 Lakeside Drive was an ideal investment opportunity for an astute investor, particularly given the attractive long term lease to a market leading company within one of Australia’s fastest growing industries, health."
Mr Pound said Burwood East was a location of choice for companies leading the way in telecommunications, multimedia, health and information technology.
“Tally Ho Business Park, situated at the corner of Burwood Highway and Springvale Road, has a reputation as a centre for high technology business and innovation,” he said.
“Tally Ho and surrounds have become one of the fastest-growing high-tech regions in Melbourne, providing an outstanding base for high-tech, knowledge-based corporations including MYOB, Motorola, Hewlett Packard, Pronto Software and Fujitsu."
Additional recent sales within Tally Ho Business Park have included:
• 378 Burwood Highway: Sold for $7.9 million in August 2014
• 5 Lakeside Drive: Sold for $13,025,000 in October 2013
• 20 Lakeside Drive: Sold for $7.14 million in May 2014
• 10 Wesley Court: Sold for $13,025,000 in October 2013
• 9 Lakeside Drive: Sold for $3.3 million in January 2015
• 12 Lakeside Drive: Sold for $16 million in April 2013