Suburban office property in Melbourne sold for A$110.9M

Suburban office property in Melbourne sold for A$110.9M

Singapore-based Ascendas Reit has acquired a suburban office property, to be constructed at 254 Wellington Road, in Melbourne, Australia for A$110.9 million (S$104.4 million) from ESR FPA (Wellington Road) Pty Limited.

“This will be our fourth suburban office property in Melbourne, Australia. We are very pleased with this acquisition as it is well-located in the Monash Technology Precinct in Melbourne, has 65% of the space pre-committed for 10 years and is DPU accretive,” said William Tay, Executive Director and Chief Executive Officer of the Manager.

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The property is expected to receive practical completion in 2Q 2020, upon which automotive company, Nissan Motor Co. (Australia) Pty Ltd, will commence a 10-year lease for 65.2% of the space. This lease has a built-in rent escalation of 3.0% per annum. The Vendor will continue to market the remaining space in the Property. From practical completion of the Property, the Vendor will provide a three-year rental guarantee for any remaining vacant space.

254 Wellington Road is a new, state-of-the-art suburban office building comprising an 8- level corporate office, workshop, café, end-of-trip facilities and multi-level car parking for 911 vehicles.

The Property has a net lettable area of 17,507 sqm and sits on freehold land. It is expected to achieve 5 Star NABERS Energy Rating and 5 Star Green Star Design.

It is well-located within Melbourne’s desirable south eastern suburb of Mulgrave, situated on the southern side of Wellington Road and within proximity of greater Melbourne. Mulgrave is 21 kilometres south east of the Melbourne Central Business District