Most of you have no doubt heard me rave about Mulgrave over the past few years—and my enthusiasm for this ripper of a commercial pocket is just as keen as ever. Mulgrave has everything going for it: it’s only 24 kms from the Melbourne CBD, in the booming South East corridor, and has a central position within the Monash Employment cluster. Surrounding businesses include Monash University, Monash Medical Centre Clayton, Monash Children’s Hospital and the Australian Synchrotron. The University, particularly, is going gangbusters right now, with Australia attracting students from all around the world (and there’s lots of upside here, with the US education sector dipping.) With all the accessory businesses and suppliers dealing with these major employers, who wouldn’t want to own commercial property nearby?
Well as it happens, one major Australian property syndicator must agree, because they’ve snapped up a fully-leased office park, paying (or so I’ve heard) over $21 million for a stake. The address is 13-15 Compare Circuit, Mulgrave, and it includes two modern, boutique office buildings with a total lettable area of 5851 square metres. The purchase was struck at a initial yield of around 7.5 per cent and I’ve heard they’re planning on offering it well in excess of this return. They’ve bought it with the intention of launching a wholesale trust in February 2017.
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