250 Camberwell Road, Camberwell VIC

Equity syndication

Commercial building acquisition

Acquisition date: August 2013

Purchase Price: $20.4 million

Target cash return: 9.5% p.a. in year 1 growing to 11.0% p.a. in year 5

Target Investor IRR: 14.5%

Overview

The property is located in the suburb of Camberwell in Melbourne’s inner east approximately 8 km from the Melbourne CBD. The locality has access to every amenity including all forms of public transport, extensive retail, nearby freeway networks and recreational facilities. The 5,420m2 modern 5 level commercial office building, constructed in 2002, presents as new having been extensively refurbished in 2013. It has 127 carparks. The property is leased to Australian Pharmaceutical Industries (“API”) Limited on a lease that expires on 31 March 2023. The property was acquired subject to a leasehold interest in the form of a long-term 75 year ground lease expiring on 30 September 2075 granted by freehold owner Melbourne Anglican Trust Corporation.

Investment Strategy

The property provides strong underlying cashflow to investors. It is anticipated that the property will be sold with approx. 5 years remaining on the API lease.