Transaction analysis from acquisition to disposal

Acquisition Disposal
Purchase Price $22.4 million $41.5 million
Sale Date Jan-13 Aug-15
Net Yield 10.1% 6.4%
NLA Rate $1,874/m² $3,471/m²
Site Rate $3,464/m² $6,418/m²
WALE 1.5 years 4.3 years
Nabers Rating 2.5 stars 3.0 stars
Past performance is not an indicator of future performance.

Overview

973 Nepean Hwy, Bentleigh was a significant asset with sound fundamentals however was badly in need of a hands on management approach. Bayley Stuart played the role of Property Manager, Leasing Agent and Selling Agent to ensure the potential of this asset could be realised.


Background and Opportunity

The asset comprised an 11,956m² (approx.) office building over five levels, with 340 car parks over two basement levels and at grade.

Bayley Stuart meticulously improved the asset through the implementation of an intensive management plan from the ground up, followed by a re-leasing program to retain existing tenants and seek high quality new tenants at improved rental levels.

We initially focused on improving property management systems and working with existing tenants on transforming the building image, which was enhanced by a major lobby upgrade with a new lift installed to service the basement car park.


Project Strategy

Reposition asset via intensive leasing and management


Outcome

31-month project timeframe


IRR Achieved

51.0% p.a.

Bayley Stuart proudly carried out the property management, leasing and sale of 973 Nepean Highway on behalf of CVC Nepean Hwy Unit Trust.