Case Study

172 Moreland Rd, Brunswick

Jul 2012 Purchase Price


Jul 2015 Disposal Price


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
Add value to the asset via upgrades and securing long-term Government lease.
36-month project timeframe
IRR Achieved
48.3% p.a.
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.