Australia - 11 Dorcas Street Sold For AUD 14 million
August 23, 2012
The quality office property was acquired by a private investor from Malaysia - a sign of deepening Asian investment in the Australian commercial property market.
A first-time buyer of Australian commercial property from Malaysia has put down AUD 14 million for the acquisition of a quality office development in South Melbourne.
In an off-market sale conducted by CBRE's Mark Wizel and Justin Clarkson, a private Malaysian family bought 11 Dorcas Street, a modern five-level office building that is fully leased to Dimension Data, an information technology company. Based on the current passing income, the purchase represents a yield of about 8.1%.
Equipped with 25 secure basement car parks, 11 Dorcas Street is located close to the Royal Botanic Gardens precinct of St Kilda Road - a feature that is believed to be a major draw for the buyers. CBRE added that the Malaysian family had been keen to own a commercial property in Melbourne for some time, and bought the asset before a scheduled public marketing campaign.
Recently, commercial properties in Victoria have been sought after by a growing list of investors from Malaysia, Singapore and China. Wizel said that in the past 30 months, Asian investors have accounted for about AUD 680 million worth of commercial property transactions in Melbourne.
"Demand has remained strong even with the Australian dollar reaching 1.05 [US] in recent times," Wizel said.
"The strong level of interest from Asian purchasers is due to the natural geographic links between Australia and key Asian countries, as well as the affinity that many Asian investors have with Australia."
Tags: Real estate investment, Business space, Office space for rent