Overseas investor snaps up FKP's Glen Waverley development

The 5000-square-metre kingsway@monash development at 293 Springvale Road, completed less than a year ago, was bought by an overseas private investor.

FKP and sales agency Knight Frank declined to comment on the terms of the deal or the estimated yield of the sale. Knight Frank agent Nick Peden, who negotiated the deal with Paul Burns, said the property had attracted significant interest from interstate and from Asia.

"This sale represents one of very few in suburban Melbourne in 2008 . (and) it displays confidence in Melbourne's suburban office precinct given the current financial turmoil," Mr Peden said.

"With high-quality tenants and long-term leases in place, the property appealed to private investors seeking passive, minimal management assets."

Three storeys, or about 75% of floor space, have been leased to tenants that include the City of Monash and the Victorian Department of Education and Early Childhood Development.

Sources estimate rents at $250 a square metre, and the vacant upper floor was reportedly being offered for lease with a year's rental guarantee of $240 a square metre before the sale.

Earlier this year, BusinessDay reported that FKP's plan to seek four-star Green Star and 4.5-star ABGR ratings for kingsway@monash was responsible for the building achieving rents above that of $210-$220 a square metre that was typically expected of the area.

A spokesman for FKP said the development had achieved its Green Star rating, although not enough time had passed since its opening to receive the ABGR rating.

FKP announced last week that developer Stockland would take a 5% stake in the group, valued at about $28 million.

Colliers International and DTZ are listed as joint leasing agents for kingsway@monash.

LINK

? www.kingswayatmonash.com.au