Hitting the sweet spot for private investors
A prominent East Melbourne office tower that has been the centre of a long-running business dispute has hit the market with an asking price of at least $20 million.
PPB Advisory took control of 176 Wellington Parade early last year at the direction of Perpetual Nominees, debt-holder for failed company Break Fast Investments.
PPB and Colliers International have since completed an extensive refurbishment and leasing campaign for the 12-storey building, which is 95 per cent occupied.
"We have spent 12 months repositioning the property to enhance its tenancy profile and improve its yield," director of PPB Advisory Allan Titterton said. "This property will hit the sweet spot for many private investors because it offers a strong yield immediately, the opportunity to reposition the asset further, and the potential for residential conversion in the longer term."
The improvements include new office fitouts and the refurbishment of infrastructure such as lifts and airconditioning.
"The work has added considerable value to the building," Colliers International's Jeremy Gruzewski said.
The 6381-square-metre building returns a rent of about $2 million a year.
Fairfax Media understands Break Fast Investments was placed in receivership in April 2010 following a dispute among the shareholders and directors. It bought the property for $6 million in 2000.
PPB has declined to release information about the scale of the company's debts "due to commercial sensitivities", according to documents filed with the Australian Securities and Investments Commission.