Melbourne metro office market shines as CV@141 Camberwell Road put on block for $120m
Melbourne’s metropolitan office market is emerging as one of the city’s favoured sectors as the trading year ends in a crescendo, with a major office building in leafy Camberwell on the block for more than $120m.
The sale is the latest test for a market already showing healthy signs of recovery after repeated lockdowns, even as the city’s central business district lags much of the nation.
Pamato Corporation developed the building in Camberwell and the A-grade complex, known as CV@141 Camberwell Road, is being sold via Cushman & Wakefield’s Nick Rathgeber, Leigh Melbourne, Josh Cullen and Mark Hansen.
The asset is in the sweet spot for the new splurge of commercial asset buying.
“We are also seeing increased interest in metro locations amid the pandemic as organisations look to offer close-to-home options for their people and the ability to drive,” Mr Rathgeber said. The building was designed by Melbourne-based architects Elenberg Fraser and is being sold fully leased with a weighted average lease expiry of more than seven years.
Major tenants include Miele Australian Headquarters, Cabrini Health and Siemens Healthineers Australian Headquarters, with the latter two joining the long list of health-based office occupiers in Hawthorn and Camberwell.
The new office building comprises 10,200sq m of net lettable area and has campus-style floor plates of up to 2700sq m. It also hosts quality end-of-trip facilities and a gymnasium, luxury common areas, an on-site cafe and 304 car spaces.
The building is the third office investment over $100m to come to market in Melbourne’s metro markets this year and is expected to attract significant attention from local and global investors.
Mr Rathgeber noted its location in the affluent Camberwell Junction Precinct, at the doorstep of major retailers and well serviced by transport options.
In September, ASX-listed Centuria Office REIT bought 101 Moray Street, South Melbourne for $205.1m on a 5 per cent capitalisation rate from the wealthy Deague family.
That new building is fully occupied and its near-city location has become a desirable area for tenants.
Alfasi is also selling a half stake in its new 10-storey office tower at 510 Church Street, Cremorne.