Fully leased Port Melbourne investment expected to fetch $40million-plus

Colliers International and Dawkins Occhiuto list four-level office building for expressions of interest

A fully leased office building in Port Melbourne is anticipated to garner more than $40million via an expressions-of-interest campaign, most notably for its tenant diversity and prime location within the Fishermans Bend Employment Precinct.

The four-level building at 187 Todd Road is home to five high-calibre tenants, including Wesfarmers’ Workwear Group, Emirates Retail Leisure and George Weston Foods, returning about $2,687,020 per annum in net passing income.

Colliers International’s Peter Bremner, Rob Joyes and Leigh Melbourne, in conjunction with Dawkins Occhiuto’s Andrew Dawkins, Walter Occhiuto and Chris Jones, are marketing the property on behalf of Terraplex.

Mr Bremner said they were expecting interest from local and offshore private investors, syndicates and institutions.

“The property has always attracted blue-chip tenants,” he said.

“The tenancy is currently headlined by Workwear Group, Emirates Retail Leisure and George Weston Foods, generating a diversified income stream with a varied expiry profile.

“There are no imminent lease expiries and all leases are structured with fixed annual reviews, which contributes to a diversified 4.1-year WALE.”

Mr Dawkins said the Fishermans Bend location, opposite the state government’s recently purchased General Motors site, was a key selling point.

“Fishermans Bend is undeniably the next chapter in Melbourne’s employment, industry and population growth story,” he said.

“187 Todd Road is located within the Fishermans Bend Employment Precinct, which is envisaged to be the hub of the city’s innovation and sustainability in the mid- to long-term future.

“The vision is to attract companies that produce world-leading research, engineering, technology and products, and support Melbourne’s global competitiveness in high-tech advanced manufacturing; provide an array of transport options; and offer ample green spaces.”

Mr Joyes said Port Melbourne office rents, when compared to those in other markets, such as the city fringe, St Kilda Road, South Melbourne and the inner east, were relatively affordable.

“The average office rent for 187 Todd Road is circa $250 per sqm per annum and, being located outside the city’s Congestion Levy zone, the property presents occupiers with a 35 to 40 per cent total occupancy cost saving when compared to the surrounding office markets,” he said.

“With city-fringe vacancy sitting at about 2.09 per cent, and limited new supply in the pipeline for Port Melbourne, rental growth is expected to be strong into the future.”

The building has a net lettable area (NLA) of about 9,212.7sqm, a 3.5-star NABERS rating and 344 undercover car spaces, plus 10 on-grade visitor parks.

“The abundance of on-site car parking equals a ratio of 3.8 cars per 100sqm of NLA, which competes favourably with other city-fringe suburbs,” Mr Occhiuto said.

“Not only that, the modern design of the offices means minimal CAPEX is required, and the layout of the floorplates suits single or multiple occupancies.”

Expressions of interest close Wednesday, October 11 at 2pm.

Colliers International Melbourne metropolitan Investment Services city fringe suburbs sale campaign expressions interest office building commercial property Wesfarmers Workwear Group Emirates Retail Leisure George Weston Foods

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