Savills Australia agents Jesse Radisich, Benson Zhou and Mark Stafford negotiated the sale on behalf of local developer Sector Property Group, who is delivering this mixed-use project which comprises self-storage units and offices in addition to the childcare centre, positioned within an evolving industrial precinct.
Mr Radisich said buyers were drawn to the attractive return on offer given the strata titled nature of the property, together with the brand new long-term lease with fixed rental growth.
“In the record low interest rate environment, many investors are searching for investment opportunities with strong returns and positive cash flow prospects. The weaker Australian dollar is also making these opportunities more attractive to off-shore investors”. Mr Radisich went on to say that buyers also attracted to the strong potential depreciation benefits and quality of the project that Sector Property Group are delivering.
Construction is underway for 14-16 Simla Street with completion expected in mid-2020, and the purchaser will enjoy a commencing rental of $545,000 per annum plus outgoings.
Located in Melbourne’s highly sought after eastern suburbs, the centre sits within an under supplied childcare market, providing scope for future growth potential.
Mr Zhou said that the property was purchased by a private Chinese investor, demonstrating that off-shore money continues to flow into the Melbourne market.
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