Portfolio Sale in Melbourne’s Coveted Richmond Office Market

Two city fringe office investments in Melbourne’s prominent Botanicca Corporate Park are being offered for sale on behalf of listed real estate group Garda Property. 

The Richmond buildings are available separately or in one line, with a combined pricing expectation of more than $120 million. 

CBRE’s Scott Orchard and Tom Ryan, together with Dawkins Occhiuto’s Andrew Dawkins and Tim Grant, have been appointed to steer the international Expressions of Interest campaign.  

The portfolio comprises Buildings 7 and 9, within Richmond’s renowned Botanicca Corporate Park, which is prominently located on Swan Street. The six-level Building 7 spans 6,587sqm while the newly developed Building 9 comprises 6,960sqm of space over five levels. 

Garda Property Group Managing Director Matthew Madsen said, “Both Botanicca 7 and Botanicca 9 are wonderful examples of Melbourne metro offices attracting quality corporate tenants over the long term. Botanicca 9, recently developed by Garda, has attracted the likes of Fujifilm and Servier on long term leases while Botanicca 7, which has recently been through a renewal process, presents with a strong four-year WALE. Garda, as it has done previously, is divesting these assets to recycle capital into the delivery of our 160,000sqm industrial pipeline in Brisbane.” 

Situated on the stretch of Yarra River separating Richmond and Hawthorn, Botannica Corporate Park houses major corporate occupiers such as Bunnings, David Jones, Country Road and Mitsubishi alongside prominent multi-national tenants within Buildings 7 and 9.  

Nearby at 480 Swan Street, Richmond Charter Hall is developing the new $410 million Australia Post headquarters.   

Multinationals Golder Associates and Fulton Hogan are among the tenants in Building 7, which is 100% leased and offers a passing net income of approximately $3.3 million per annum.  

Building 9 has an estimated fully leased net income of approximately $3.9 million per annum derived from major occupiers such as Fujifilm, Servier Pharmaceuticals and NuVasive Inc. 

CBRE Senior Director Scott Orchard noted, “Melbourne’s city fringe office market has shown incredible resilience over the past few years and leasing activity has defied expectations. This rare portfolio sale gives buyers a choice of two exceptional office investments or the opportunity to double down in a location that is hyper connected to Melbourne’s freeway and public transport network and endorsed by many corporate heavyweights.” 

Dawkins Occhiuto Managing Director Andrew Dawkins said the diverse income stream and staggered lease profile of the buildings would be highly attractive to potential purchasers. 

“Both buildings are defensive assets which are positioned to capitalise on periodic rental growth opportunities. A strong environmental focus from inception means both buildings offer 5-star NABERS energy ratings and buyers will also have access to attractive depreciation benefits, which will complement returns. This is particularly the case for Building 9, which incorporates cutting edge office accommodation and is forecast to require minimal capital expenditure,” Mr Dawkins said. 

Expressions of Interest will close on Thursday 15th of September.