 Asset Class: | Office |
 Price: | $ 10350000 |
 Net Yield: | 6.48 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
Trophy 4,048m2 (approx) prime landholding within the heart of Narre Warren’s commercial hub, available off market. This dual tenanted asset comes with a AAA grade anchor tenant being the Commonwealth of Australia, providing exceptional security until at least 2030. The significant landholding comes with exceptional longer term development upside potential, owing to favourable Activity Centre zoning, and prime positioning. <br><br>Centrelink is the primary occupant of the building, providing an essential service in the local area. The asset was purpose built for the anchor tenant in 2012. The landlord has secured a rare net lease with Centrelink (typically gross leases), which extends to 2030, along with 2 x 4 year options. Annual increases are adjusted by CPI. The second tenant is a major not for profit organisation – GenU. GenU have recently signed a new lease, extending to late 2029, with annual 4% increases. <br><br>This impressive freehold property delivers a net return of $670,541 (allowing for Centrelink’s increase in April), with an impressive net yield of 6.48%. It is worth noting that Centrelink assets located in metro Melbourne, trade at much tighter net yields. This sets the foundation for strong capital growth in the short term. <br><br>The approximate 1,480m2 building is understood to be in very good condition, as can be expected with the tenant types. Both tenancies benefit from significant fit out investments, which serves to retain loyalty from the occupants. The 57 basement and at-grade carparks also support tenant loyalty, along with assisting to attract new tenants if and when required. <br><br>One of the strengths of the asset is its strategic location, within the immediate vicinity of the significant Fountain Gate shopping centre, the property is only a short walk to an abundance of retail and food & beverage opportunities. Within close proximity to major arterials and public transport, this property is easily accessible.<br><br>This rare off market opportunity will suit investors seeking strong lease covenants, combined with above average returns, with the enticing added benefits of longer-term development and capital growth upside. <br>
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Narre Warren, located in Melbourne’s southeast, is a high-growth suburb in the City of Casey. It is a well-established commercial and residential hub, making it an attractive location for investment across various asset classes. <br><br>Here’s why:<br><br>Strong Economic Growth & Infrastructure<br><br>Narre Warren is a key part of the Casey growth corridor, one of Victoria’s fastest-growing regions. Significant government and private investments in infrastructure, transport, and commercial development continue to drive economic activity and demand.<br><br>Excellent Connectivity & Transport<br><br>• Monash Freeway (M1) provides direct access to Melbourne’s CBD (approximately 38km away).<br>• Narre Warren Train Station is part of the Pakenham line, connecting commuters to the city.<br>• Princes Highway enhances accessibility to surrounding suburbs and regional areas.<br>Westfield Fountain Gate – A Major Commercial Hub<br>One of Australia’s largest shopping centres, Westfield Fountain Gate, anchors the suburb, attracting high foot traffic and supporting strong retail and service-based businesses. The centre draws customers from surrounding areas and contributes to strong local employment.<br><br>Diverse Business & Employment Opportunities<br><br>• A mix of retail, professional services, healthcare, and industrial operations ensures economic resilience.<br><br>• The Casey Business Park and growing commercial precincts cater to expanding industries and corporate tenants.<br><br>• Health and education sectors are thriving, with the Casey Hospital and numerous schools supporting a growing population.<br><br>High Population Growth & Demand<br><br>• Narre Warren benefits from rapid population growth, driven by affordability and lifestyle appeal.<br><br>• Strong residential demand fuels commercial and retail activity, ensuring continued business success.<br>Stable Rental Market & Investment Potential<br><br>• High demand for both residential and commercial leasing, ensuring strong occupancy rates.<br><br>• Retail, office, and industrial properties benefit from a well-balanced mix of national brands, SMEs, and essential service providers.<br>Future Growth Prospects<br><br>• Ongoing infrastructure projects and urban planning initiatives will continue to enhance the area’s appeal.<br><br>• The suburb’s role in the South East Economic Corridor positions it for long-term capital growth.<br><br>Narre Warren presents a compelling investment opportunity with its strong fundamentals, excellent connectivity, and ongoing urban expansion.<br>
Additional Location Information FileInitial Term:
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Security Info:
71-73 Webb Street, Narre Warren – 1,480m2 - $453/m2 Werribee Part, 89-91 Synnot Street 1,120m2 - $455/m2 Boronia Part, 3 William St 1,094m2 - $490/m2 Brunswick 172 Moreland Road 4,218.3m2 - $504/m2 Footscray 75 Moore Street 2,200m2 - $511/m2 VIC Mildura 112-124 Deakin Avenue 958m2 - $450/m2
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- Net Income: approx. $670,541– net yield of 6.48% (including all non-recoverables). Off market opportunity enabling a purchase above the cap rate for like assets in metro Melbourne. <br><br>- Significant 4048m2 (approx.) freehold landlholding in Metro Melbourne, with a well maintained 1,480m2 (approx.) building area.<br><br>- Prime, strategic location within the immediate vicinity of Fountain Gate shopping centre, and surrounded by big name retailers. <br><br>- Tenanted by the Commonwealth Government and a major NFP organisation – GenU, both on long term leases. <br><br>- Close to 100% of the outgoings are recoverable from both tenants.<br><br>- Built in 2012, the asset is likely to come with depreciation benefits. <br><br>- Major strength of 57 basement and at-grade carparks.<br><br>- Both tenancies benefit from significant fit out investments, supporting tenant loyalty. <br><br>- Significant long term potential development upside and capital upside, given the prime landholding, combined with favourable Activity Centre zoning. <br>
