Colliers International lists 5,420sqm office investment with expectations of $28million-plus
The Australian administrative headquarters for Australian Pharmaceutical Industries (API) and Priceline is promising prospective buyers a prized investment at more than $2million per annum in net passing income.
The modern five-level office building is leased to ASX-listed top 200 company API Limited, while the café is leased to Camberwell Food Group Pty Ltd, combining to give a six-year WALE based on income.
Colliers International’s Peter Bremner and Rob Joyes have been appointed to market 250 Camberwell Road, Camberwell, via expressions of interest on behalf of Bricktop Group. The leasehold interest is being offered in the form of a long ground lease to the Melbourne Anglican Trust Corporation, expiring in about 58 years on September 30, 2075.
Mr Bremner said enquiry was expected from local and offshore investors and syndicates, with the sale price projected at more than $28million.
“The building occupies a prominent Camberwell Junction position in one of Melbourne’s major metropolitan activity centres, with dual street frontage to Burke and Camberwell roads,” he said.
The modern office building, which was constructed in 2002, has a 3.5-star NABERS rating, net lettable area of 5,420sqm, typical floor plate size of 1,250sqm to 1,450sqm, and 127 car parks.
“Minimal CAPEX is required, with a new chiller installed just last year,” Mr Bremner said. “With strong growing cash flow and substantial depreciation benefits, this property represents an exceptional opportunity for the astute investor.
“In a prime location for tenants, within a two-minute walk of quality amenity, the building has a modern all-glass facade and high-quality office fitouts.
“The leafy park outlook and natural light are especially conducive to staff satisfaction, and the large, flexible floor plan is easily subdividable to accommodate more tenants.”
Mr Joyes said API had invested heavily into its fitout and had a long lease remaining.
“API has its IT division across the road and its flagship Priceline retail store nearby on Burke Road – the company is a very sticky tenant and likely to remain in the building for many years to come,” he said.
“Tenants have very few options above 4,000sqm in this market,” he said. “This all points to strong rental growth for Camberwell office owners in the years ahead.”