Cedar Woods builds on Williams Landing success with government backed investment opportunity
National property developer Cedar Woods has moved to sell a new A-grade office building it is developing in the growing commercial precinct of Williams Landing in Melbourne’s booming south west.
30 Apr 2018
Located at 107 Overton Road, the four-level office building is fully leased to the Victorian State Government (Minister for Finance) for an initial 15 years, with two additional five-year options available.
CBRE’s Luke Etherington, Scott Orchard and Lewis Tong have been appointed to manage the sale process on behalf of Cedar Woods via an International Expressions of Interest Campaign. The property is being offered for sale on a fund through structure, with practical completion of the A-grade building expected July 2019.
Williams Landing is strategically located between Melbourne’s CBD and Geelong - Victoria’s second largest city - and is well connected to both cities by road and public transport.
The 107 Overton Road property will form part of the greater Williams Landing Town Centre - a 50ha precinct designated by the Victorian State Government as a priority development zone and key “activity centre”. Williams Landing is a project of state significance and is ultimately expected to provide employment for up to 23,000 people.
The opportunity to purchase 107 Overton Road follows the sale of Target’s new head office, also in Williams Landing, on behalf of Cedar Woods in 2017. The property, due for completion in November 2018, was purchased by Centuria Property Investments for $58.23 million.
Mr Orchard said the Overton Road property offered outstanding investment fundamentals that would attract strong buyer interest.
“As demonstrated by the sale of the Target head office in mid-2017, there is significant investment interest in suburban real estate underpinned by strong lease covenants such as national corporations and government tenants,” Mr Orchard said.
Mr Orchard added: “With an initial 15-year lease in place, this A-grade office building offers an outstanding opportunity to secure an investment grade asset in a commercial precinct that continues to go from strength to strength.”
Cedar Woods Chief Operating Officer Patrick Archer says that the new tenant signifies the increasing depth of economic activity that is occurring in Williams Landing and the western corridor.
“The Victorian State Government’s decision to join Williams Landing reinforces the town centre’s strong credentials as a major commercial centre. We are extremely proud to be able to cater for such large corporate tenants,” says Mr. Archer.
“We are seeing an increasing number of businesses recognise the economic potential of this fast-growing development zone.”
Purpose built for the Victorian State Government, the brand-new asset will comprise a net lettable area of 3,126sqm across four levels and 92 car parking bays. The building is targeting a 4.5 Stars NABERS energy rating.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.