An investment group with Chinese connections has snapped up a prominent office building in Box Hill following a highly competitive EOI campaign.
An investment group with Chinese connections has snapped up a prominent office building at 15-17 Prospect Street in Box Hill following a highly competitive Expressions of Interest campaign managed by Savills and Colliers International.
Situated within the rapidly changing 'Major Development Precinct' of Box Hill, the 1305 square metre site is fully occupied by a two level office building of 2,121sq m with basement car parking for 60 cars. It is fully leased to Cummins (global machinery group) for one more year and then presents the opportunity to reposition or totally redevelop the property, with height potential of at least 20 levels.
The property was sold by Clinton Baxter and Nick Peden of Savills, together with Peter Bremner and David Minton of Colliers on behalf of a private investment group that had owned the property for approximately 10 years.
Mr Baxter said the property had proved extremely popular with local and Asia-based developers and investors seeking to secure a strategic landholding in central Box Hill, one of Melbourne’s most rapidly evolving suburban locations, pushing the land rate to $9,350 per square metre.
"Box Hill is undergoing an explosive transformation, with major landholdings rapidly rising in value as developers scramble to secure suitable sites throughout the suburb to respond to the enormous demand for apartments close to Box Hill Central.”
Mr Bremner said "the property was sold with the benefit of a short-term lease to Cummins to provide developers with an income stream whilst preparing proposals for a future mixed-use project. However, the property has been purchased by a group of investors wishing to continue to hold and lease the building as a highly strategic land bank, rather than develop immediately."
Click here to learn more about Savills CBD & Metropolitan Sales VIC.