Singapore-based Ascendas REIT has expanded its footprint in the suburban office sector with the $111 million purchase of the Nissan Motor’s site in Melbourne.
The group bought the suburban office property site from joint venture partners Frasers Property Australia and ESR Australia. It will add to Ascendas’ wide-ranging logistics and office assets across Australia.
Currently under construction, the building represents the first stage of a substantial business park development at 254 Wellington Road in the emerging commercial precinct of Mulgrave in Melbourne’s south-east.
The business park is expected to have an end value in excess of $400 million when completed. Stage one comprises 17,393 square metres of office space and is anchored by Nissan who will occupy 11,000 square metres for their national headquarters.
The new building will achieve a 5 Star Green Star Design and As Built v1 certified rating from the Green Building Council of Australia. Practical completion of the facility is due in mid-2020.
Anthony Maugeri, general manager for southern region commercial and industrial at Frasers Property Australia, said the property has a long weighted average lease and offered exposure to Melbourne’s suburban office market.
CBRE and JLL advised Ascendas on the purchase.
ESR Australia chief executive Phil Pearce said the sale was a good outcome for stage one, “allowing us to recycle capital for other high-calibre opportunities in the pipeline”.
“We’re now turning our attention to the next three phases of the development at 254 Wellington Road, where enquiries are showing strong demand for this desirable location,” Mr Pearce said.
The 4.67 hectare joint venture site has received planning approval for 60,000 square metres of commercial, 2497 square metres of retail space and secure car spaces. The entire development is forecast for completion by late 2025.
In Sydney, Frasers Australia has launched its leasing campaign for its western Sydney large format retail destination at Eastern Creek Quarter (ECQ).
The second stage of ECQ will deliver about 11,600 square metres of retail space with 20 to 25 tenancies, ranging from 250 square metres to 2500 square metres.
Stage one of ECQ will be anchored by Woolworths and feature “ECQ Social”, a dining and entertainment precinct. Frasers Property is preparing for stage two which is anticipated to open in late 2020.
Tim Moore, general manager of retail leasing at Frasers Property Australia, said ECQ stage two will offer an “unparalleled opportunity for brand presence in a region benefiting from significant infrastructure investment and strong forecast population growth”.
“The fundamentals for large format retailers and showrooms at ECQ demand real consideration. The site itself is easily accessible, with 11.2 million vehicles travelling along the Great Western Highway annually and the population in the main trade area is undergoing significant growth,” Mr Moore said.
Large format retail leasing specialist Retail Projex has been appointed to coordinate the leasing campaign for ECQ stage two.
Keep up with Commercial Real Estate news.