A significant landholding in Melbourne’s Tally Ho Corporate Business Precinct is preparing to hit the market and is expected to sell for more than $22 million.
12 Lakeside Drive, Burwood East features a three level, 4,509 sqm office building, and approximately 350 car spaces on an oversized site of 1.711 hectares. The property is fully leased to VicRoads, which has occupied the property since 1996 and recently committed to a new three year term to mid-2021.
The sale is being managed by CBRE Melbourne Middle Markets Kiran Pillai, Scott Orchard, Matthew Szakiel, Josh Rutman and Lewis Tong, who with CBRE’s Victorian Development Sites team also sold the Hewlett Packard Melbourne headquarters in Tally Ho last year.
CBRE State Director Kiran Pillai said: “It was clear to see from the depth of interest for the Hewlett Packard property, with a large development opportunity associated with it, the market is confident in the long-term commercial future of Tally Ho”.
“With new commercial development and major infrastructure projects bolstering overall appeal, the Tally Ho office precinct is quickly becoming the preferred and most centralised location in Melbourne’s east, which will ensure the continued appeal of quality buildings to tenants and business indefinitely.”
CBRE agent Scott Orchard added: “The property was perfectly balanced with a rare mix of elements including a highly versatile office, government tenant coupled with attractive lease, Commercial 1 zoning, and enormous site area providing for additional or alternative development options STCA.”
“The property sits at one of the highest points of the business park, so the building enjoys a panoramic outlook in addition to the abundance of car parking,” Mr Orchard said.
The property has an annual net income of $1,642,088 per annum with 3.5% annual increases and is located in one of the few commercial business precincts serviced directly by tram or train public transport.
“The suburban office market is experiencing new levels of buyer demand as offerings are limited and quality property like 12 Lakeside Drive is tightly held,” said CBRE State Director Josh Rutman.
“Combined with more competition, as CBD and fringe buyers look further out for opportunity and Asian capital grows its appetite across a range of sectors, it’s no surprise to see this shakeup in the suburbs given buyer confidence in sustained capital growth,” Mr Rutman said.
Tally Ho is located between Box Hill and Glen Waverley’s ‘The Glen’ Shopping Centre, which is undergoing a $500million upgrade. The centrally located commercial precinct accommodates many leading professional services, healthcare, humanitarian, software, IT and emergency services organisations including, Country Fire Authority, ESTA, Motorola, NEC and World Vision.
12 Lakeside Drive is to be sold via Expressions of Interest sale campaign closing August 16, 2018.