New Commonwealth of Australia Lease set to Underpin Interest in Melbourne Investment Property

The Melbourne home of the National Archives of Australia (NAA) is set to hit the market, offering up a commercial investment with historical significance and a sought-after Commonwealth of Australia lease.

CBRE’s Scott Orchard and Tom Ryan, together with Gorman Commercial’s Peter Bremner and Jonathan McCormack, have been appointed to market the Burwood East property, which benefits from a new five-year lease commitment, plus an option.

The 31 Vision Drive property is one of a small number of NAA repositories around the country housing Australia’s most valuable government, cultural and historically significant records.

Currently owned by Melbourne family office Dorman Capital, the building is situated within the renowned Tally-Ho Business Park precinct, with NAA being a long-standing occupier of the purpose-built property.

Managing Director Nicholas Dorman said it was time for a new caretaker, noting, “31 Vision has been a tremendously reliable set and forget investment that has been core to our diversification strategy. However, the fresh lease renewal, given the highly suited nature of the asset, will provide a new owner attractive value and dependable returns, while allowing us to redirect capital to our development pipeline and other new projects.”

The Burwood East asset has significant and versatile improvements totalling circa 6,432sqm, occupies a Commercial 1 zoned site of approximately 11,860sqm, and offers a variety of future reversionary options.

It generates an annual net income of approximately $2,366,861 with 3.5% annual increases.

CBRE Senior Director Scott Orchard said the investment opportunity was akin to a government bond by virtue of the Commonwealth lease supported by the high underlying land value.

“The property offers one of the market’s most sought after lease covenants, combined with significant and versatile improvements, which position it defensively against market headwinds while offering a variety of future reversionary options,” Mr Orchard said.

Tally-Ho Business Park is located between Box Hill, Glen Waverley’s ‘The Glen’ Shopping Centre and just east of Deakin University and the proposed Burwood Suburban Rail Loop Train Station in Melbourne’s Eastern Suburban corridor.

Gorman Commercial Director Peter Bremner added, “The Tally-Ho location with unique infrastructure will be another buyer drawcard, given its standing as one of metropolitan Melbourne’s most renowned government, essential and emergency service, office, technology and data centre precincts. The area is home to leading professional services, healthcare, humanitarian, IT and emergency service organisations, including Country Fire Authority, ESTA, Motorola, NEC, Hewlett Packard, World Vision and Eastern Health.”

The Expressions of Interest campaign will close mid-June with a price guide of $30 million+.