Hellenic Club exits Dandenong after Williams Landing buy
The Hellenic Club of Canberra has sold out of its government-leased building in south-east Melbourne for $17.3 million after having bought into the market two months earlier.
In its latest deal, the club’s subsidiary Hellenic Property Investments has sold the office building at 1-9 Dandenong Street in Dandenong to a private investor on a 6.15 per cent yield.
The three-level property is fully leased to the state government which operates a number of agencies which assist victims of crime.
“The property was highly sought after given the age of the building, long-term government lease and its social infrastructure bent,” said selling agent Walter Occhiuto, of Dawkins Occhiuto.
The building was constructed in 2014 with a pre-commitment from the state government. The Hellenic Club took it over in 2015 for $12.5 million, property documents show.
Sitting on land parcel of 3134 square metres, the building has 2846 sq m of office space with a single-level basement car park.
The property has a net income of $1,057,304 annually, with six years remaining on lease.
JGS Property director of property, Russell Meacham, who acted for the Hellenic Club, said the disposal was in line with the club’s “current investment strategy”.
In July, the club’s real estate investment arm bought into a new office property that will also be government-tenanted in a growth area on the other side of Melbourne in a $25.93 million deal.
The acquisition for the new asset at 107 Overton Road in the emerging suburb of Williams Landing in Melbourne’s southwest was struck on a yield of 5.4 per cent.
ASX-listed Cedar Woods will complete the building, which has commenced construction, and hand it over to the Hellenic Club in 2020. The building is fully pre-leased to the Victorian government for 15 years with options.
That building was the third office building which Cedar Woods has sold in from a master-planned development at Williams Landing.
