Case Study

600 Church St, Cremorne

Jan 2018 Purchase Price


Apr 2020 Valuation
(Practical Completion)


600 Church Street, Cremorne occupies a high-profile location on the corner of Church Street and Balmain Street in Cremorne, one of Australia’s most desirable office precincts.

The newly constructed eight-level commercial office building comprises of ground floor retail space with double height ceilings and mezzanine, seven levels of office accommodation, and a large rooftop terrace for a total estimated NLA of 5,799m².

Project Strategy
Acquire this yet to be constructed asset with no tenant pre-commitment and generate an enhanced long-term income stream with strong capital growth by achieving leasing success during and post construction.
Target IRR
10.0% p.a.
IRR Achieved
43.6% p.a.
(On appraised valuation of $70m at settlement over 22-month project timeframe)
Transaction Analysis from Acquisition to Practical Completion
Acquisition Valuation (for Practical Completion)
Price $50.0 million $70.0 million
Sale/ Valuation Date Jun-18 Apr-20
Net Income p.a.¹ $NIL $3,673,969
NLA Rate² $8,622/m² $12,094/m²
Past performance is not a reliable indicator of future performance.
¹Net income based on fully leased property at market rates.
²NLA rate on acquisition based on forecast NLA of 5,799m², NLA of 5,788m² assumed in valuation.
Background and Opportunity

BSC acquired the yet to be constructed asset in June 2018 with no pre-commitment tenants and promptly began marketing it for lease.

  • During construction secured six binding Agreement for Lease’s (AFL’s) to high-quality occupiers including the likes of Domain and The Hoyts Group.
  • The asset was in excess of 75% leased prior to practical completion significantly exceeding model assumptions and all other speculatively developed offices in Melbourne’s fringe market during the same period.
  • Rental terms achieved significantly outperformed model leasing assumptions and set new benchmarks for fringe leasing rates.
  • Secured a premier retailer for the ground floor café, Axil Coffee Roasters to further enhance the amenity for office tenants.
  • Settled the asset during the peak of the Covid-19 Pandemic in April of 2020.

This transaction demonstrated BSC’s ability to identify office assets that have the attributes required to attract quality tenants, and take on lease risk with a well-defined strategy, in doing so achieving outstanding results for investors.