MAB Funds Management has negotiated a new 10-year lease with Australian dental centre operators, Pacific Smiles Group, at The Pavilion, overlooking Bourke Street Mall.
In the pre-emptive deal, MAB FM with the assistance of Allard & Shelton, negotiated the surrender of a lease with Blockbuster to secure Pacific Smiles Group for the longer term. Blockbuster’s lease was due to expire in June 2008.
“We are very strategic when it comes to lease negotiations. We had an opportunity to secure a long term lease for the building and avert down time which can occur between tenant leases,” MAB FM’s general manger Nick Gray said.
“MAB FM identified the strength of the Pavilion’s amenities and location when the property was purchased, and tenants also clearly recognise these attributes,” he added.
Pacific Smiles Group’s general manager John Gibbs said the group was delighted to have secured such strategically located premises and was looking forward to commencing operations in late February 2007.
The centre will be designed with the city worker in mind, comprising five surgeries – each fitted with state of the art technology and a modern and stylish interior.
The new lease follows a period of strong leasing activity for the Pavilion, including a recent six-year renewal to Angus & Robertson, whose tenancy represents 26.6% of the property’s income.
The Pavilion is owned by the MAB Bourke Street Trust, an unlisted Australian unit trust. The four level retail property was constructed in 1995 and has a gross building area of 3,025 sqm.
The property is located in north-west corner of the intersection of Bourke and Elizabeth Streets opposite the former Melbourne GPO and the western end of the Bourke Street Mall.d by
In addition to Angus & Robert and All Smiles Group, the property is also tenanted St George Bank, Kathmandu and Intrepid Travel.
The property was recently re-valued at $22.25 million in June, which is $5.05 million above its 2004 valuation. The property has an average unexpired lease term of 4.58 years (by income).
By Adam Parsons
