Transaction analysis from acquisition to disposal

Acquisition Disposal
Purchase Price $12.3 million $20.95 million
Sale Date Jul-12 Jul-15
Net Yield 10.1% 6.4%
NLA Rate $2,916/m² $4,967/m²
Site Rate $3,737/m² $6,365/m²
WALE 0.5 years 7.25 years
Nabers Rating 2.5 stars 5.0 stars
Past performance is not an indicator of future performance.

Overview

172 Moreland Road had expansive open floorplates with a total net lettable area of 4,218m² and basement parking for 79 cars, situated within the Sydney Road retail precinct and located metres from Moreland Train Station.


Background and Opportunity

Bayley Stuart saw the opportunity to acquire the asset on an attractive yield with only six months remaining on the lease. By employing our leasing experience and knowledge of the existing Government anchor tenant, we were able to add value instantly by securing a new 10-year lease.

As part of our lease negotiations we undertook a $600,000 Capex program to improve the NABERS rating from 2.5 stars to 5 stars to exceed the Government’s standard target rating.


Project Strategy

Add value to the asset via upgrades and securing long-term Government lease


Outcome

36-month project timeframe


IRR Achieved

48.3% p.a.