PROMINENT MELBOURNE BUSINESS PARK BUILDING SELLS FOR $18.08 MILLION
Written on the 20 September 2017 by David Simmons
THE headquarters of Melbourne's Country Fire Authority (CFA) has sold for $18.08 million following a competitive expressions-of-interest campaign.
The site, in Burwood East, was sold to the private arm of Teo Tong Lim, the group managing director of Singapore-based Tong Eng Group.
The group recently acquired 5 Queens Road in Melbourne and 117 Clarence Street in Sydney.
Colliers International's Peter Bremner, who brokered the deal, says the sale demonstrates the ongoing demand for commercial investments in east Melbourne.
"The campaign was hotly contested by a range of buyers, including local private investors, Sydney-based institutions and offshore buyers," says Bremner.
"We received 10 expressions of interest and pleasingly, the sale concluded with Tong Eng Group after a relatively quick two-week due diligence period."
Tong Eng Group's investment director, Terence Teo, says he was pleased to acquire such a prominent building, one of the most high-profile properties within the Tally Ho Business Park.
"Set within pristine landscaped surroundings, the location is top notch, with beautiful homes amidst a hive of retail activity," says Teo.
The building is currently fully leased to the CFA and generates $1,697,176 per annum.
Andrew Dawkins from Dawkins Occhiuto, who assisted in brokering the deal, says the area where the building sits is considered one of the best in Melbourne.
"Tally Ho Business Park is considered one of Melbourne's best known hi-tech office parks and has always attracted long-standing quality tenants, such as VicRoads, Hewlett Packard, Motorola, ESTA and Ambulance Victoria, to name a few," says Dawkins.
"The building is still in very good condition and buyers realised that while the CFA are likely to stay and renew the lease, the building would still be relatively easy to lease to single or multiple tenants even if they left."
In December last year, Colliers International transacted the sale of the Motorola office headquarters in the Tally Ho Business Park for $19.55 million.
Business News Australia
Author: David Simmons