Following a highly competitive international tender process, Salta Properties has sold the current Dulux Group headquarters at Clayton in Melbourne’s south east.
The sale was exclusively handled by the CBRE Melbourne Middle Markets team of Scott Orchard, Josh Rutman and Lewis Tong, with the purchaser being a private family based in Hong Kong.
The buyer, a first-time investor in Australia, fought off strong interest from several local and interstate syndicators and private investors.
“Despite some concerns about the amount of new office supply in Melbourne’s south eastern corridor, we received six tenders, with representation from South and West Australia, as well as Queensland and New South Wales,” Mr Orchard said.
“The appetite for sub $100 million office investments in Melbourne is at fever pitch, across all geographies, and this is having a major impact on pricing as very few quality assets have come to market in 2019. Proactive owners are taking full advantage of this trend and are looking to take their properties to market before year’s end.”
Located on the corner of Princes Highway and McNaughton Road, the unusually designed building was developed as corporate headquarters for the Dulux Group in 2007. The company is currently the subject of a takeover bid from Japanese giant Nippon Paint.
“The relatively short remaining lease term proved to be quite a hindrance for some buyers, but others were extremely confident in the broader office market and the ability to continue to attract strong tenants to the building,” Mr Orchard said.
CBRE’s Mr Tong said the sale demonstrated the growing trend of Asian capital gravitating towards income producing assets, with 55% of all Melbourne metropolitan offices being purchased by either mainland Chinese, Hong Kong, Singaporean or Malaysian interests in 2019.
“International and domestic investors are telling us that they are looking for quality office assets that they can hold with confidence for the medium to long term, as they are looking to benefit from Melbourne’s rental growth story,” Mr Tong said.
He added that Melbourne’s metropolitan market had become increasingly appealing for buyers, particularly international investors who had historically focused on the CBD or city-fringe, with close close to $500 million of investment from Chinese and Hong Kong capital in Melbourne’s metropolitan office sector in the past 12 months.
The sale was exclusively handled by the CBRE Melbourne Middle Markets team of Scott Orchard, Josh Rutman and Lewis Tong, with the purchaser being a private family based in Hong Kong.
The buyer, a first-time investor in Australia, fought off strong interest from several local and interstate syndicators and private investors.
“Despite some concerns about the amount of new office supply in Melbourne’s south eastern corridor, we received six tenders, with representation from South and West Australia, as well as Queensland and New South Wales,” Mr Orchard said.
“The appetite for sub $100 million office investments in Melbourne is at fever pitch, across all geographies, and this is having a major impact on pricing as very few quality assets have come to market in 2019. Proactive owners are taking full advantage of this trend and are looking to take their properties to market before year’s end.”
Located on the corner of Princes Highway and McNaughton Road, the unusually designed building was developed as corporate headquarters for the Dulux Group in 2007. The company is currently the subject of a takeover bid from Japanese giant Nippon Paint.
“The relatively short remaining lease term proved to be quite a hindrance for some buyers, but others were extremely confident in the broader office market and the ability to continue to attract strong tenants to the building,” Mr Orchard said.
CBRE’s Mr Tong said the sale demonstrated the growing trend of Asian capital gravitating towards income producing assets, with 55% of all Melbourne metropolitan offices being purchased by either mainland Chinese, Hong Kong, Singaporean or Malaysian interests in 2019.
“International and domestic investors are telling us that they are looking for quality office assets that they can hold with confidence for the medium to long term, as they are looking to benefit from Melbourne’s rental growth story,” Mr Tong said.
He added that Melbourne’s metropolitan market had become increasingly appealing for buyers, particularly international investors who had historically focused on the CBD or city-fringe, with close close to $500 million of investment from Chinese and Hong Kong capital in Melbourne’s metropolitan office sector in the past 12 months.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
