Acquisition

Acquisition –  Melbourne CBD

Project Background:

A private client approached Bayley Stuart with a mandate to acquire a neighbourhood shopping centre or office building. Our research and experience in the local market identified opportunities within the Melbourne Central Business District (CBD) office market, highlighted by imminent short-term rental growth due to positive net absorption and low vacancy rates. After further investigation our research confirmed that yields for well-located commercial office buildings displayed a superior investment to the investor.

Outcome:

Bayley Stuart’s search focused on office assets with a strong retail component. We identified and secured an underlet building with a diversified income stream comprising a NLA breakdown of approximately 65% office, 30% retail and 5% car parking.

Within 6 months of acquiring the property, Bayley Stuart increased occupancy from 82% to 100% and within 12 months increased the office rental income by in excess of 20%. To date, the property remains fully let, displaying strong rental growth from the time of acquisition.