Opus Capital Group has bought a commercial office building for $25.6 million in Melbourne’s south eastern suburb of Mulgrave.
The property will be invested into the Opus Income & Capital Fund No. 21, bringing the total value of properties within Opus Income & Capital Fund No. 21, which was launched in February 2006, to $80 million.
In addition, the total number of properties in Melbourne owned across various Opus funds has increased to four.
The building is located at 700 Springvale Road and was acquired from the Juilliard Group of Companies, which has owned the building since it was built in the early 1990’s.
The building is on a large site of approximately 7,800 sqm and has a net lettable area of 6,930 sqm and is currently tenanted by ANZ Bank, Sinclair Knight Merz, Colliers International and Hays Personnel.
Opus’ chairman Tony Moody said the group was attracted to the property for a number of reasons, including the outstanding physical condition of the building, facades and grounds, which have been maintained in an exemplary manner.
“In addition, its location within an established and sought-after commercial office precinct and a generous 361 parking spaces, were important factors,” Moody said.
He added the strategic acquisition brought further diversity to the assets within the Opus Income & Capital Fund No. 21, which already included a commercial office building, “Zurich House” in Bundall on the Gold Coast and The Cairns Corporate Tower, located in the heart of the Cairns’ CBD.
Moody said Opus would continue to investigate a range of properties for its Income & Capital Fund No.21 along Australia’s eastern seaboard adding that the changing Melbourne market provided further opportunities for Opus.
The off market transaction was facilitated by Colliers’ International investment sales associate Nick Rathgeber.
Rathgeber said the building was on a par with the best major office buildings in Melbourne’s outer-east and boasted quality long standing tenants and potential for significant rental growth.
He added that Mulgrave was witnessing unprecedented demand from tenants seeking proximity to the freeway network, high car parking ratios and quality accommodation, which in turn was pushing rents up.
The areas of Mulgrave, Mount Waverley and Notting Hill are established as Melbourne’s premier suburban hi-tech office and industrial precincts. Major occupiers represented within the immediate locality include Daimler Chrysler, BMW Australia, Adidas, Coles Myer, Monash University and Toyota.
“Investors have recognised Mulgrave’s potential, and Opus has been able to secure a foothold in what is one of Melbourne’s most tightly held markets,” Rathgeber said.
“Our move to 700 Springvale Road in 2001 was a strategic decision to ensure we were well placed for the boom of the south eastern commercial and industrial markets, which is greatly dependent on the freeway network. It is a landmark building in the heart of the development and investment activity, ideal for Colliers International as a tenant and a smart buy for Opus,” Colliers’ International state chief executive John Marasco said.
By Adam Parsons
