Fund manager Trilogy Funds has disposed of an office property in northwest Melbourne on behalf of the Ravenhall Office Trust for more than $13 million.
The property was located at 271-279 Robinsons Road in Ravenhall, about 21 km west of Melbourne’s CBD.
The 3,124 sqm office comprised parking for 236 vehicles and was situated on an 8,291 sqm site within the Orbital Business Park.
Fresh food business Costa Group occupied about 80% as its headquarters, with Royal District Nursing renting the balance.
“Taking into consideration the sale price, the estimated internal rate of return (IRR) delivered by the Trust for investors is expected to be 11.00% p.a.,” Trilogy Funds co-founder and Managing Director Philip Ryan said.
“The sale price was achieved due to the strong current demand for Melbourne metropolitan office assets, particularly in major growth areas, as well as the property being less than 15 years old and having a history of tenants of good covenant on long leases.”
The agents for the sale were Quinn Reynolds’ Marcus Quinn and Lincoln Reynolds with Savills’ Julian Heatherich, Benson Zhou and Nick Garoni.
Recent Melbourne office deals include Growthpoint Properties’ purchase of a modern office in Hawthorn East for $125 million and Harbour Group’s sale of an office building in Burwood East for $13 million.
Last month, Singapore-listed Straits Trading Company bought two office buildings in Docklands for $150 million, while Hong Kong-listed Link REIT entered into a $596 million deal with Oxford Properties to invest in an office portfolio including the 567 Collins Street building in Melbourne.
Rathdrum Properties also bought the eight-level office building at 570 St Kilda Road from Terraplex for $67.6 million last month, while Irongate Group acquired a stake in a grade-A office building in Cremorne for $130 million in December last year.
Outside of Victoria, Canadian pension investment manager PSP Investments and Charter Hall Group acquired an office development under construction in Brisbane last week.
Marquette Properties also exchanged contracts to buy an office tower in Brisbane’s ‘Golden Triangle’ from Dexus in a $420 million deal.
In Sydney, AEW sold an A-grade office tower in the Sydney CBD to the Shayher Group for $199 million last month, as Allianz Real Estate and the National Pension Service of Korea (NPS) bought a 50% stake in Sydney’s Commonwealth Bank Place for about $625 million.
Interested in the office market? Take a look back at Australia’s biggest single office sales in 2021.