- ISPT pays $35.8 million for the Burwood East office building, which houses the Country Fire Authority of Victoria (CFA)
- The 5456sqm site at 8 Lakeside Drive in Burwood East was bought from Singapore-based TE Capital Partners and will form part of ISPT’s CIB Fund
- The facility, which was built in the late 1980s, has been home to the CFA since its inception, with the group recently renewing on a fresh 10-year lease term
- CIB Fund Manager Georgina Bishop says this is the fund’s first acquisition in 20 years
ISPT has paid $35.8 million for a Burwood East office complex, which serves as the headquarters for Victoria’s Country Fire Authority (CFA).
After being purchased from Singapore-based TE Capital Partners, the 5456sqm land at 8 Lakeside Drive in Burwood East will become part of ISPT’s CIB Fund.
The facility, which was built in the late 1980s, has been home to the CFA since its inception, with the group recently renewing on a fresh 10-year lease term.
The acquisition establishes a new pricing benchmark for the Tally Ho Business Park, located 20 kilometres east of Melbourne’s CBD, and represents a return of little less than 4.5 per cent on fully-leased net income.
With the CFA occupying the whole 4502sqm nett lettable space, the two-level building has a weighted average lease expiry of a little over nine years.
TE Capital Partners’ off-market sale effort was coordinated by CBRE’s Tom Ryan and Scott Orchard.
“The sale further demonstrates the strong and rising demand for long-WALE assets with secure income streams, especially those linked to essential services or the government,” Mr Ryan said.
“TE Capital purchased the asset four years ago, with the CFA on a short lease at the time, and during their ownership they have repositioned the property and signed a new 10-year lease on market terms with the CFA.”
CIB Fund Manager Georgina Bishop said the acquisition aligns with the ISPT CIB Fund investment strategy to strengthen income security and tenancy profile.
“This is the fund’s first acquisition in 20 years,” she said. “It’s also our first step to growing the portfolio as its new investment manager, whilst creating enhanced value for our investors.”
The property features 121 parking spaces and a 67m frontage in the Tally Ho area, which is an important nexus for government organisations and emergency services providers.
“The tightly-held nature of the market at present is resulting in a number of groups aggressively targeting opportunities on an off-market basis, which is resulting in incredibly strong outcomes as evidence by this sale,” Mr Orchard added.