South Haven divests Cheltenham office

13th July, 2021

Marc Pallisco, realestatesource.com.au

South Haven Group has offloaded a Cheltenham office after 17 years.

The three level, 4050 square metre building at 1279 Nepean Highway cost it $6.5 million – a price which reflected an 11.5 per cent yield.

It has sold to an as yet undisclosed private investor for close to $20m – a circa-five pc return.

Nichols Crowder’s Matt Nichols brokered the off-market deal.

The property is a holding from the Tudor Inn hotel, which was listed for sale last month.

A Hooker Projects office

The 1279 Nepean Hwy office was constructed in c1988 by Hooker Projects – which sold it shortly after for $8.9m.

For years until 2007 it was tenanted to Simplot.

When that occupier left, South Haven – then known as Prattcorp – undertook a renovation, securing IBM, which utilised it as a data centre.

The IT giant is still based there though its lease is short term.

The site spreads c4800 square metres at the south east corner of Hill Street (story continues below).

“With the longer-term trend of working closer to home expected to continue in 2022, some institutions and high net worth individuals are getting in early to secure offices in prime suburban locations away from the CBD,” Mr Nichols said.

“[This] property was attractive due to its location and versality, as well as the large hardstand car park for 120 cars,” he added.

“This creates enormous flexibility to increase the floor plates, increase parking or even add more floors,” according to the executive.

The address is set to benefit from the new Southland train station and the proposed rail loop depot, which will connect Cheltenham to Melbourne Airport via Box Hill.

The Mordialloc Freeway, which is under construction, will also hook the area up to a network joining the CBD, and Mornington Peninsula, via Dandenong, Mr Nichols said.

“Many firms are re-aligning their objectives, staffing and culture to the new business environment post COVID,” the agent added of the leasing market.

“As a result, more businesses are wanting to be located near their teams, which is good for suburban offices”.

More to come.