Case Study
172 Moreland Rd, Brunswick
Jul 2012 Purchase Price
$12.30m
Jul 2015 Disposal Price
$20.95m
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.
Outcome
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.
