The Dandenong Family Court of Australia has changed hands for $12 million, with the location the only site outside of Melbourne’s CBD.
A private investor purchased 53-55 Robinson Street, a 2,729sqm office building that has been a family law court servicing a vast metropolitan and regional population since the mid-1980s.
Alex Ham and Michael Gross of Gross Waddell ICR in conjunction with CBRE Middle Markets’ Scott Orchard, Scott Hawthorne and Jimmy Tat sold the Dandenong Family Court of Australia on behalf of the Melbourne-based vendor.
The property transacted with a lease to the Commonwealth Government through to July 2023 with no further options. Based on the annual rent of $782,413, the sale reflects a yield of 6.5 per cent.
“Given the current lack of income-producing stock and the strong demand for such assets, we received multiple offers on the property at time of sale. Offers came from a wide range of buyers, including international and local investors, all attracted to the lease covenant that is equivalent to a government bond,” Mr Ham said.
“The result was a very strong outcome, given the age of the asset, short WALE of two years and the uncertainty around the tenant staying beyond the current lease term,” Mr Orchard added.
It comes as Greater Dandenong City Council welcomed recent announcements of significant investment for the local area.
As part of the Victorian Government’s Community Sports Infrastructure Stimulus Program, a synthetic soccer pitch will be developed in Ross Reserve, Noble Park and funding for the redevelopment of Burden Park Tennis Club has been granted.
Mayor Angela Long said the stimulus program complements the many improvements currently being invested in across the city.
“We are thrilled to receive this funding which will have lasting benefits for the health of our community through new and improved sports facilities,” Cr Long said.
“There is significant work underway throughout our city, and in particular through the work of our Noble Park Revitalisation Board.”
Lee Tarlamis, Member for South Eastern Metropolitan Region and chair of the Noble Park Revitalisation Board said “I’m really looking forward to working with the Board to deliver new projects and real outcomes for our local community.”
Council has received $500,000 via the Victorian Government’s Suburban Revitalisation Program which has contributed to the delivery of the All Abilities Playground and the Douglas Street streetscape upgrade.
The State Government has funded $1.75 million for the soccer pitch, and $1 million for the tennis club, which will be boosted by contributions from Council and the Burden Park Tennis Club.