Private investor snaps up Box Hill office for more than $17 million

A local private investor has swooped on an outstanding freehold office with value-add upside in Box Hill in another substantial sale in this highly sought after Melbourne market.
 
Colliers’ Peter Bremner, Leon Ma, Rachael Clohesy and Joe Kairouz have sold 26-28 Prospect Street, Box Hill for $17,158,000 on behalf of Vantage Property Investments following an International Expressions of Interest campaign.
 
The property comprises a four-level office building of 3,028sqm which is 91.4% leased with a 1.5 year WALE. The property sold on a capital rate of $5,666/sqm.
 
“The property was offered with an approved planning permit for a 30-level mixed-use development, however was ultimately purchased by a private investor,” Mr Ma said. “The purchaser was a local private investor seeking a quality office with diverse tenancy mix in an established Box Hill location surrounded by amenity and public transport.”
 
Mr Bremner said the building was one of the best examples of a quality office building in the Box Hill market, providing well-maintained office accommodation with a 4.5-Star NABERS Energy rating.
 
The asset recently underwent refurbishment works including modernising of all amenities as well as office accommodation and full upgrades to the base building’s heating, ventilation and air conditioning systems.
 
“This is the second large office investment sale Colliers has negotiated in the Box Hill area in recent months, following the December 2020 sale of 3-7 Hamilton St, Mont Albert for $27.85million,” Mr Bremner said. “It also follows the sale of the Box Hill ATO to Charter Hall for $230million on a 5% yield.
 
“The appealing Box Hill location, quality of the asset and potential for future redevelopment, positioned 26-28 Prospect Street as one of the most attractive offerings within the Melbourne Metropolitan market for 2021.”