EUROPEAN investors have snapped up a large office block in Melbourne's South East market for $41.5 million.
The sale of Bayside Junction in Bentleigh follows Colliers International's largest on-market campaign in the city during 2015.
Peter Bremner and Jeremy Gruzewski facilitated the sale, in conjunction with Bayley Stuart's Andrew MacGillivray and Alasdair MacGillivray, on behalf of JAK Investment Group.
Bremner says European investors purchased the building through Henkell Brothers Investment Managers, with a yield of about 8.7 per cent.
"Bayside Junction has asserted itself as the premier office asset in Melbourne's South East market and represented an enticing investment proposition," Bremner says.
"The campaign attracted interest from local private investors as well as syndicates and interstate-based national institutions, before ultimately being purchased by Henkell Brothers Investment Managers on behalf of a partnership of European investors."
Andrew MacGillivray says Bayside Junction has recently been refurbished, as well as attracted high-calibre tenants including Alfred Health as an agency for Headspace and Royal District Nursing Services.
This follows the Commonwealth Government confirming their commitment to anchor around 50 per cent of the building for another five years.
"The entire 11,956sqm building has been leased or renewed within the past 12 months during what has been a subdued leasing market," MacGillivray says.
"This illustrates the demand of new entrants wanting to secure tenancies within Bayside Junction and also the commitment of existing tenants to remain for further terms.
"This underpins the market dominating position that the property holds. Located in a prime south-eastern location, Bayside Junction offered a rare opportunity to make an investment in a recently refurbished and landmark office building in a popular, tightly held bayside suburb."
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