Case Study

172 Moreland Rd, Brunswick

A modern Government backed prime office investment situated on a large site with upside potential via new lease or future development.

172 Moreland Road had expansive open floorplates with a total net lettable area of 4,218m² and basement parking for 79 cars, situated within the Sydney Road retail precinct and located metres from Moreland Train Station.

Project Strategy

Reposition asset via intensive leasing and management.

Target IRR

27.0% p.a.

IRR Achieved

36.4% p.a.
(12 month project timeframe)

Transaction Analysis from Acquisition to Disposal

									
					Acquisition				

					Disposal				

				Purchase Price			

				$12.30 million			

				$20.95 million			

				Sale Date			

				Jul-12			

				Jul-15			

				Net Yield			

				10.1%			

				6.4%			

				NLA Rate			

				$2,916/m²			

				$4,967/m²			

				WALE			

				0.5 years			

				7.25 years			

				NABERS Rating			

				2.5 stars			

				5.0 stars

Past performance is not a reliable indicator of future performance.

Background and Opportunity

Bayley Stuart saw the opportunity to acquire the asset on an attractive yield with only six months remaining on the lease. By employing our leasing experience and knowledge of the existing Government anchor tenant, we were able to add value instantly by securing a new 10-year lease.

As part of our lease negotiations we undertook a $600,000 Capex program to improve the NABERS rating from 2.5 stars to 5 stars to exceed the Government’s standard target rating.