United Heritage PF lists circa $19m office/retail complex

July 23, Melbourne 

Victorian based boutique investment firm United Property Fund Ltd (United PF) has put its Chirnside Park office and retail complex on the market with expectations of providing purchasers with an attractive yield in the low 6% range for a circa $19million outlay.

According to Dawkins Occhiuto Director, Walter Occhiuto, who is marketing the property with Director, Tim Grant, the property is, in terms of its office accommodation, without peer in the local market, while its key attributes include significant underlying land value and the multiple avenues to add value over time. 

"Nothing in the vicinity even comes close to the amenity – the lake, landscaped gardens, restaurants, excellent natural light, on-site parking, close proximity to key arterials and shopping - and the standard of accommodation, and while in itself that is obviously an outstanding attribute, perhaps the property’s most attractive point of difference is in its exceptional upside prospects.

"There is the potential for office reversion and repositioning of some of the smaller tenancies, while the low site coverage (circa 30%) and massive vacant carpark, provide significant future development potential.  

"And then of course there is the alternative exit strategy option provided by the 35 separate certificates of title.

"It’s a property that has multiple avenues to reversion with significant value add prospects, whether it be via repositioning the office or redeveloping parts of the site for alternative uses such as childcare (STCA). We expect a strong market response for a property which is expected to sell below replacement cost,’’ Mr Occhiuto said.     

Constructed in 2009 on the Maroondah Highway and opposite Chirnside Park Shopping Centre, the 1 East Ridge Drive complex comprises an immaculately presented three level, 4429 square metre NLA building, including a substantial 1028 square metre NLA retail component with four tenancies and a 2314 square metre NLA office component with 23 tenancies, on a 1.42 hectare, Commercial 1 zoned site.

Mr Grant said the property, to be sold with a net passing income of $1.255 million on a 2.1 year WALE with a 97 per cent occupancy rate, had an excellent rental history with key tenants including Field Group, Victorian Aboriginal Child Care Agency, LaTrobe Community Health Services (NDIS), KFT Investments, and the Commonwealth of Australia. 

He said the property could also boast excellent street exposure with 170 metres Maroondah Highway frontage and an estimated 35,000 cars passing each day.

"The local region’s growth prospects – the latest population growth figures exceeded that of Greater Melbourne – will also be front of mind for investors, especially at a time when workers are experiencing far greater freedom to work from home and live further away from the CBD,’’ Mr Grant said. 

The property is being offered for sale by Expressions of Interest closing Thursday, August 5 at 3pm.