An Asian investor has secured one of Melbourne’s most prominent suburban office assets, with Peak Equities Pty Ltd selling the leasehold interest in 250 Camberwell Road, Camberwell, following a competitive Expressions of Interest campaign.
The five-level A-grade office building, prominently positioned at the intersection of Camberwell and Burke Roads, transacted for an undisclosed sum after attracting more than 50 enquiries from local, interstate and offshore groups
Comprising 4,954 sqm of net lettable area and 125 secure on-site car parks, the fully refurbished asset is 100 per cent leased to seven first-generation tenants and offers a six-year weighted average lease expiry by income
The property generates a net passing income of approximately $2.077 million per annum and was underpinned by its diversified tenancy mix spanning office, financial services, allied health and technology occupiers.
Daniel Wolman of Cushman & Wakefield, who negotiated the sale alongside colleagues Oliver Hay, Leon Ma and Raphael Favas and Peter Bremner and Stephen Gorman of Gorman Commercial, said buyer appetite was driven by the combination of secure income and blue-chip location fundamentals.
“We saw exceptionally strong engagement from capital seeking secure, long-term income in tightly held metropolitan markets,” Mr Wolman said.
“With over 50 enquiries throughout the campaign, the depth of offshore interest highlighted continued demand for stabilised, high-quality office assets in proven suburban precincts.”
Originally constructed in 2002 and extensively refurbished in recent years, the building benefits from dual street frontages, a new lobby and end-of-trip facilities, and proximity to Camberwell Junction’s retail, transport and lifestyle amenity
Peter Bremner of Gorman Commercial said the transaction reinforced improving sentiment across Melbourne’s middle-market office sector. “This result reflects renewed confidence in well-leased suburban office investments,” he said.
“Camberwell Junction remains one of Melbourne’s most established and resilient commercial hubs, and assets of this scale and calibre rarely come to market. The strength of pricing achieved demonstrates that quality, income security and location continue to drive capital allocation decisions.”
