Case Study

973 Nepean Hwy, Bentleigh

A high exposure office building with large floorplates and potential for substantial asset growth through the implementation of intensive site upgrades.

973 Nepean Highway, Bentleigh was a significant asset with sound fundamentals however was badly in need of a hands on management approach. Bayley Stuart played the role of Property Manager, Leasing Agent and Selling Agent to ensure the potential of this asset could be realised.

Project Strategy

Reposition asset via intensive leasing and management.

Outcome

31-month project timeframe

IRR Achieved

51.0% p.a.

Transaction Analysis from Acquisition to Disposal

									
					Acquisition				

					Disposal				

				Purchase Price			

				$22.40 million			

				$41.50 million			

				Sale Date			

				Jan-13			

				Aug-15			

				Net Yield			

				10.1%			

					6.4%			

				NLA Rate			

				$1,874/m²			

				$3,471/m²			

				Nabers Rating			

				2.5 stars			

					3.0 stars			

				WALE			

				1.5 years			

				4.3 years

Bayley Stuart proudly carried out the property management, leasing and sale of 973 Nepean Highway on behalf of CVC Nepean Hwy Unit Trust.

Past performance is not a reliable indicator of future performance.

Background and Opportunity

The asset comprised an 11,956m² (approx.) office building over five levels, with 340 car parks over two basement levels and at grade.

Bayley Stuart meticulously improved the asset through the implementation of an intensive management plan from the ground up, followed by a re-leasing program to retain existing tenants and seek high quality new tenants at improved rental levels.

We initially focused on improving property management systems and working with existing tenants on transforming the building image, which was enhanced by a major lobby upgrade with a new lift installed to service the basement car park.